By Ateev Bhandari and Allison Lampert
(Reuters) -Electric aircraft maker Beta Technologies was valued at $7.44 billion after its shares opened flat in their New York Stock Exchange debut on Tuesday, signaling investor caution over a prolonged U.S. government shutdown.
After U.S. President Donald Trump’s tariffs scuttled IPOs earlier this year, a triumphant comeback of first-time share sales is now being tested by a partisan gridlock in Washington.
The Securities and Exchange Commission is operating at skeletal levels with eased restrictions allowing listings to move forward, a move analysts say can alienate investors due to higher risk or insufficient transparency.
The company’s stock opened at $34 apiece, at par with the offer price.
On Monday, Beta sold 29.9 million shares above its marketed range of $27 to $33 apiece to raise $1.01 billion in an upsized IPO, indicating robust investor appetite for cheaper aviation.
The debut, albeit muted, still ranks GE Aerospace-backed Beta among the top listed players in the sector. Peers Archer Aviation and Joby Aviation, both of which went public in 2021 via blank-check deals, command a $6.72 billion and $14.45 billion valuation, respectively, as of last close.
Although approached in the past by special purpose acquisition companies, Beta is going public now as it is in production and progressing in the long certification process to bring aircraft parts and planes to market, CEO Kyle Clark told Reuters.
“We have the ability to forecast into a pipeline that’s secure with deposit-based backing, and we have a major certification behind us,” Clark said.
Clark added that he hasn’t seen a material effect of the U.S. government shutdown on its programs.
In June, Trump signed an executive order to accelerate eVTOL aircraft development, followed by a pilot program last month to speed up deployment of the flying taxis.
“Aircraft can be delivered to customers for certain applications, which would provide payment, before the full regulatory process is completed,” Clark said.
Beta designs and makes electric aircraft, advanced electric propulsion systems, charging systems and aircraft components.
Electric battery-powered aircraft, especially ones that can take off and land vertically, are expected to provide cheaper and quieter alternatives to helicopters for emergency medical services, cargo and defense.
Beta’s electric vertical take-off and landing, or eVTOL, variant, expected to be certified by late 2027 or early 2028, can reduce operational expenses by 74% compared with traditional helicopters, according to internal estimates.
(Reporting by Ateev Bhandari in Bengaluru and Allison Lampert in Montreal; Editing by Sahal Muhammed and Alan Barona)
Comments