Defence technology company BORESIGHT LTD (ASX:BST) made a strong debut on the ASX on Wednesday, with its shares surging as much as 90% after completing an $8 million initial public offering.
The Canberra-based company listed at 20 cents per share, valuing the business at approximately $41.8 million. The IPO was backed by Regal Funds Management, along with several Australian family offices and high-net-worth investors.
Shares climbed to an intraday high of 38 cents, representing a gain of 90% on the issue price, before easing to trade around 35 cents, still up about 75%.
Defence training focus
Boresight develops and manufactures low-cost aerial target drones designed specifically for military training and testing programs. Unlike surveillance or combat drones, the company's products are intended to simulate real-world aerial threats and are designed to be shot down during exercises.
The company's offering combines expendable target drones with proprietary mission planning and ground control software, allowing military customers to conduct realistic counter-drone training exercises and live-fire testing. The platform also supports swarming capabilities, enabling multiple drones to be flown simultaneously from a single control station.
Global customer base
Since its establishment in 2020, Boresight has sold more than 6,000 drones to military and industry customers, including 15 militaries across 12 countries, with manufacturing operations now established in both Australia and the United States.
The company has also expanded internationally with offices in the US and the UK as it seeks to capitalise on growing demand for counter-drone training capabilities amid the increasing use of drones in modern warfare.
Managing director and chief executive officer Justin Olde said the ASX listing marked an important milestone for the business.
“Listing on the ASX is the start of the next chapter for Boresight. Western and allied militaries have learned, the hard way, that you cannot defend a threat you have never trained against. We build the targets and create the control system that lets them train affordably, repeatably, and at scale. The support we have received from Regal, leading family offices and investors, reflects a clear conviction in the structural growth ahead, and in Boresight’s distinct position within it.
"Funding from this IPO is going to be instrumental in taking the business to the next level by helping us to advance our manufacturing capabilities, and enabling us to hire some key personnel, such as engineering expertise. We’re at that transition stage from small business playing in a global market, to a global player in the market.”
Growth strategy
Boresight plans to use the IPO funds to increase manufacturing capability, expand engineering resources and grow its global sales presence. The company is also developing additional drone products, including first-person-view and fixed-wing target drones, while pursuing recurring contracts with defence customers.
A key feature of Boresight's business model is that its target drones are consumable products that are intentionally destroyed during training exercises, creating recurring demand as customers replenish stock.
About Boresight
Boresight develops and supplies drone-based training systems that help military and industry customers conduct realistic counter-drone exercises and testing. Its offering combines expendable aerial target drones, mission planning software and ground control technology to simulate evolving drone threats and improve operational readiness.
The company's product suite includes both quadcopter and fixed-wing target drones designed to replicate the performance and flight characteristics of modern drone threats. These systems enable repeatable training and evaluation exercises without putting expensive surveillance and reconnaissance assets at risk.
With operations spanning Australia, the United States and Europe, Boresight provides integrated counter-drone training solutions supported by in-house engineering expertise and manufacturing capabilities.