Electric aircraft manufacturer Beta Technologies (BETA.US) sets IPO price at $27-33 per share, aiming to raise $825 million.

Despite the government shutdown in the United States, electric aircraft manufacturer Beta Technologies (BETA.US) still plans to raise up to $825 million through an initial public offering (IPO). According to the filing submitted to the Securities and Exchange Commission (SEC) on Wednesday, the company plans to issue 25 million shares of stock at a price range of $27 to $33 per share. At the upper end of the price range, combined with the number of outstanding shares listed in the filing, Beta's market value would reach $7.2 billion. The company was valued at $2.4 billion in a financing round in 2022, and its valuation increased in the previous round of financing the year before. As Beta formally launches its IPO campaign, the government shutdown has caused the SEC to be unable to declare the IPO registration effective. In such a situation, some companies choose to proceed with their listing in the uncertain regulatory environment with extended timelines. The SEC released guidance on October 9 allowing IPO applicants to list a price range instead of a fixed price in their filings, but registration still needs to wait for 20 days to become effective, leaving companies facing certain risks. According to the terms of the deal, the IPO is expected to set the price on November 3. The filing shows that AllianceBernstein, BlackRock, Inc., Chuck Davis' affiliated entities from Stone Point Capital, GE Aerospace, and accounts managed by Alliance Bernstein's Kaufmann Funds have expressed interest in collectively subscribing for up to $300 million in stock. The filing shows that in the first half of this year, Beta generated revenue of $15.6 million and a net loss of $183 million, while in the same period in 2024, the company recorded revenue of $7.6 million and a net loss of $137 million. The filing also states that Beta was founded in 2017, headquartered in South Burlington, Vermont, and is currently developing electric aircraft for passenger and defense applications. Earlier this year, the company's ALIA conventional takeoff and landing aircraft completed a flight from Hamptons to New York's Kennedy International Airport and made its first appearance at the Paris Air Show. Additionally, both the FAA and the U.S. military have test-flown Beta's aircraft. "The advent of electric aviation is unstoppable," CEO Kyle Clark wrote in a founder's letter, "We believe electric aviation will reduce flight costs, enhance safety, expand aviation applications, while achieving balanced development with the environment." After the IPO, Clark is expected to hold 63.2% of the company's voting rights and all of Beta's outstanding Class B shares. Fidelity Investments (FMR LLC) will hold 12.8% of Class A shares, Amazon.com, Inc.'s Climate Pledge Fund will hold 5.6% of Class A shares. Excluding potential cornerstone investments, GE Aerospace will hold 9% of Class A shares, and Davis' affiliated entities will hold 7% of Class A shares. In September of this year, GE Aerospace agreed to invest $300 million, and the two parties will establish a strategic partnership to jointly develop hybrid power turbine generators. Beta's IPO issuance is led by Morgan Stanley and Goldman Sachs Group, Inc. The company plans to list on the New York Stock Exchange under the ticker symbol "BETA."