Target-practice drone maker lauds spike on trade debut
One Australia The company, which produces cheap unmanned aerial vehicles for armies to destroy during training, rose after entering the stock market.
Boresight shares were changing hands for 36 cents Wednesday afternoon; This gave the company a market cap of $75 million, an 80 percent increase from its 20-cent offering price in its $8 million initial public offering.
“I can’t say we were surprised by the result,” Boresight managing director and chief executive Justin Olde told AAP.
“There was a lot of interest leading up to the bell, so you’re always cautiously optimistic.
“It’s great that things are going well, we’re very excited about that.
“We’re in a great position in a very fast, expanding and growing market, and that’s reflected in the share price.”
Canberra-based Boresight has sold more than 6,000 single-use drones to defense contractors and 15 militaries in 12 countries since 2020.
They are used as realistic aerial threats in counter-drone training and live-fire evaluation.
Boresight says its proprietary control system supports safe, repeatable training for soldiers around the world facing the new era of drone warfare.
The funds raised in the initial public offering will be used to expand Boresight’s footprint in other markets, especially the US and Europe.
“We will increase our engineering capacity to come up with new products and bring products to market,” Mr. Olde said.
“Our priority will be to Australianise or at least Westernise much of our supply chain to ensure supply chain security and also give us a better margin,” he said.
“So instead of paying someone else to do something for profit, we do it ourselves.”
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