Key facts
- Lyntris raised $297.5 million in its US IPO.
- The IPO was priced at $17.50 per share, below the initial range of $19-$22.
- The company offered 17 million shares, down from an initial proposal of 24 million.
- Lyntris' shares fell 11.4% on their New York debut, valuing the company at $1.78 billion.
Defense contractor Lyntris and some of its existing stockholders raised $297.5 million in a downsized U.S. initial public offering, pricing below the marketed range and offering fewer shares. The company, based in Falls Church, Virginia, priced its IPO at $17.50 per share, compared with the initial range of $19 to $22. The offering included 17 million shares, a reduction from the initially proposed 24 million shares. Lyntris sells battlefield sensors and software for the U.S. and its allies, and its backlog more than doubled to $923.9 million as of June 30 from a year earlier. The listing caps off a robust summer for the IPO market, with Lyntris being the latest in a wave of defense companies to list shares in New York since April. Matt Kennedy, senior strategist at Renaissance Capital, noted that defense companies need to demonstrate sustainable growth driven by mission-critical products, as investors discount revenue from one-off programs. Lyntris was formed in May by Dallas-based private equity firm Trive Capital through the combination of portfolio companies Accelint and Vitesse. Evercore ISI, Citigroup, and Guggenheim Securities were the lead book-running managers for the offering. Lyntris shares fell 11.4% in their New York debut on Wednesday, opening at $15.50, below the IPO price, giving the company a valuation of $1.78 billion.