Electric aircraft manufacturer Beta Technologies (BETA.US) has an IPO price of $27-33 per share to raise US$825 million

The Zhitong Finance App learned that despite the US government being shut down, electric aircraft manufacturer Beta Technologies (BETA.US) plans to raise up to US$825 million through an initial public offering (IPO). According to the company's filing with the US Securities and Exchange Commission (SEC) on Wednesday, it plans to issue 25 million shares at an issue price range of $27 to $33 per share.

Based on the upper limit of the issue price range, combined with the number of tradable shares listed in the document, the market value of Beta will reach 7.2 billion US dollars. In 2022, the company was valued at $2.4 billion in a round of financing, while in last year's financing, its valuation was higher than in the previous round.

When the beta officially launched the listing promotion, the SEC was unable to announce the entry into force of the IPO registration due to the suspension of US federal government activities. Under these circumstances, some companies chose to proceed with listing in the context of unclear supervision and extended timelines. The SEC issued guidelines on October 9, allowing listing applicants to list a starting price range instead of a fixed price in the document, but they still need to wait 20 days for the registration to take effect, which puts companies at certain risk.

According to the terms of the transaction obtained, the issuance price of this IPO is expected to be determined on November 3. According to the documents, affiliates of AllianceBernstein (AllianceBernstein), BlackRock (BlackRock), Stone Point Capital Co-CEO and Beta Board Member Chuck Davis, GE Aerospace (GE Aerospace), and accounts managed by the UnionBohman Kaufmann Fund have all indicated their intention to subscribe for up to 300 million US dollars of shares in total.

Documents show that in the first half of this year, Beta achieved revenue of 15.6 million US dollars and a net loss of 183 million US dollars; in the same period of 2024, the company had revenue of 7.6 million US dollars and a net loss of 137 million US dollars.

The document also states that Beta was founded in 2017 and is headquartered in South Burlington, Vermont, and is currently developing electric aircraft for passenger transportation and defense. Earlier this year, the company's ALIA conventional take-off and landing aircraft completed a flight from the Hamptons to New York's JFK and debuted at the Paris Air Show. Additionally, the US Federal Aviation Administration (FAA) and the US military have both tested beta aircraft.

“The arrival of electric aviation is unstoppable,” CEO Kyle Clark wrote in the founder's letter. “We believe electric aviation will reduce flight costs, improve safety, expand aviation application scenarios, and achieve balanced development with the environment.”

According to the documents, after the IPO is completed, Clark is expected to hold 63.2% of the company's voting rights and will own all of the beta B shares already issued and circulated. FMR LLC will hold 12.8% of Class A shares, and Amazon.com Inc.'s Climate Pledge Fund (Amazon.com Inc.'s Climate Pledge Fund) will hold 5.6% of Class A shares. If potential cornerstone investments are excluded, General Aerospace will hold 9% of Class A shares, and Davis' affiliates will hold 7% of Class A shares.

In September of this year, General Aerospace agreed to invest 300 million US dollars. The two sides will establish a strategic partnership to jointly develop hybrid turbines.

The beta IPO was underwritten by Morgan Stanley and Goldman Sachs Group. The company plans to list on the New York Stock Exchange under the ticker symbol “BETA.”