Avio Goes Public in Successful Offering

Italian rocket manufacturer Avio SpA, which is the prime contractor and systems integrator for Europe’s Vega booster, went public this week in Milan.

Shares of Avio jumped 11 percent following the listing Monday, which came after a merger with investment vehicle Space2 SpA and marked the exit of private-equity funds led by Cinven Ltd., while doubling the stake held by Italian aerospace and defense group Leonardo SpA.

Chief Executive Giulio Ranzo said in an interview that Avio, maker of the Vega rocket, will now be able to tap capital in a more flexible way, something that’s crucial as the launcher industry is targeted by well-funded entrants such as SpaceX and Amazon.com Inc. founder Jeff Bezos’s Blue Origin LLC.

“Our industry is changing a lot,” Ranzo said. “There is an unprecedented move towards more and more commercial demand. If we want to be able to compete we need to be able to mobilize resources, invest in new products and bring them to the market.”

Read the full story.