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Drone maker Aevex descends as PE sponsor trims stake in $216 mln stock offering

BUZZ-Drone maker Aevex descends as PE sponsor trims stake in $216 mln stock offering

** Drone maker Aevex's AVEX.N shares down 2.7% at $26.91 before the bell on Thurs after $216 mln stock offering priced

** Solana Beach, California-based firm late Weds announced 8 mln shares at $27, a 2.4% discount to last sale

** AVEX shares dropped ~28% over the past two sessions after co commenced the offering late Mon

** Co offers ~5.73 mln shares and existing shareholders offload ~2.27 mln shares

** AVEX intends to use net proceeds it receives to purchase shares from members of ATS Investment Holdings, including entities controlled by Madison Dearborn Partners, per the prospectus

** Post offering, private equity firm Madison Dearborn retains 70% voting power

** Goldman Sachs, BofA and Jefferies joint lead bookrunners for offering

** AVEX went public on Apr 17 after selling 16 mln shares in IPO priced at $20

** All 8 analysts are bullish including 3 "strong buy" ratings; median PT $35, per LSEG


(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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