Amaero Raises A$50M to Accelerate U.S. Defense Manufacturing Growth

Capital Raise to Fuel Strategic Growth

Amaero Ltd (ASX, 3DA) has announced a significant capital raise of A$50 million through a placement of 125 million new shares priced at A$0.40 each. This move comes despite the company already being fully funded to complete its A$72 million capital expenditure plan and achieve positive EBITDA by FY2027. The additional funds will accelerate growth initiatives originally planned for FY2027 and beyond, underscoring Amaero’s ambition to expand its footprint in the advanced manufacturing and defense sectors.

Strong Investor Appetite Amid Defense and Re-shoring Themes

The placement attracted strong interest from institutional investors, reflecting growing market enthusiasm for companies aligned with defense manufacturing and sovereign supply chain re-shoring. Amaero’s board seized this opportunity to not only raise capital but also to diversify and strengthen its shareholder base with new institutional participants. The company’s strategic positioning in the U.S., where government initiatives prioritize domestic defense industrial capabilities, makes it a compelling investment in a generationally significant sector.

Accelerating Advanced Manufacturing Capabilities

Proceeds from the placement and the planned Share Purchase Plan (SPP), which aims to raise up to A$3 million from existing shareholders, will be directed towards accelerating key capital investments. These include ordering a new 4 atomizer by the end of the calendar year and designing an Argon gas recycling unit, both critical to enhancing Amaero’s manufacturing efficiency and capacity. The company’s expertise in producing high-value refractory and titanium alloy powders, alongside its leadership in powder metallurgy hot isostatic pressing (PM-HIP), positions it well to meet increasing demand for advanced components in defense, space, and aviation industries.

Financial Discipline and Long-Term Vision

Chairman and CEO Hank J. Holland emphasized the company’s disciplined capital allocation over the past three years, noting that prior to this raise, Amaero had secured nearly A$100 million in funding, with approximately A$70 million in cash and tangible assets on the balance sheet. The board’s decision to raise additional equity capital reflects a long-term view of the re-shoring opportunity as transformative. By accelerating investments now, Amaero aims to solidify its first-mover advantage and competitive cost position in a market increasingly focused on sovereign manufacturing capabilities.

Next Steps and Market Implications

The placement shares will rank equally with existing shares and are expected to commence trading on the ASX shortly. The SPP offer will open at the end of August, allowing eligible shareholders in Australia and New Zealand to participate at the same price. Amaero’s ability to execute on these accelerated initiatives will be closely watched by investors, particularly as the company seeks to capitalize on U.S. policy momentum supporting domestic defense manufacturing and supply chain resilience.