Beta IPO Seeks Backing for Growing Electric Aircraft Family

Beta Technologies is seeking to raise more than $1 billion through an initial public offering on the New York Stock Exchange. The electric aircraft developer offered 29,852,941 Class A shares priced at $34 when the market opened on Tuesday, while also granting underwriters a 30-day option to purchase an additional 4,477,941 shares.

Its initial offering is expected to close on November 5, with the company trading under the ticker symbol BETA. The IPO is being made solely through a prospectus offered via lead book-running managers Morgan Stanley and Goldman Sachs.

U.S.-based Beta is working towards type certification for its Alia CX300 airplane and Alia 250 eVTOL, which respectively operate in conventional and vertical takeoff and landing modes. It recently delivered early examples of the CX300 for operational trials to be conducted by early-use case customers Bristow and Air New Zealand.

This CX300’s target timeline for FAA certification is reported as late 2026/early 2027, with the Alia 250 expected to follow 12 months later. Beta is also working on certification for its H500A electric motors.

Beta founder and CEO Kyle Clark has confirmed plans to develop larger aircraft than the current six-seat models, potentially with capacity to carry between 19 and 150 passengers. The company has yet to declare whether these would use battery-electric powertrains or some form of hybrid propulsion.

According to Clark, Beta’s business model encompasses a evolving family of aircraft for applications spanning medical logistics, cargo deliveries, military roles, and passenger transportation services. It also expects to derive revenues from selling its Charge Cube and Mini Cube ground power infrastructure.

Methodical Approach to Market Readiness

Clark told AIN that the start-up’s leadership team purposely held off on going public until it had established extensive manufacturing capabilities covering not only the airframes, but also the propulsion units and other key systems such as the flight controls. To build supply-chain resilience, it is investing in in-house capabilities covering processes such as grinding and advanced welding.

“We’ve taken a methodical approach in not addressing one singular problem with one product, and so we’ve developed materials and systems that work for more than one aircraft,” he noted. Beta plans to use capital raised from the IPO to step up certification work and preparations for series manufacturing at its factory in Vermont, as well as introducing higher performance propulsion capabilities, including new battery cells.

The IPO launched this week represents an increase in both the number of shares on offer and the target share price declared in Beta’s S-1 Securities and Exchange Commission filing on October 15. In that document, the company projected that it expected to raise just over $800 million in fresh capital, once expenses are deducted. Earlier this year, General Dynamics and GE made strategic investments in the company.

Unlike other eVTOL developers—including Joby, Archer, Eve and Vertical—Beta opted not to go public via a merger with a special purpose acquisition company. These companies went to Wall Street several years ago and appear to be following similar timelines to Beta in terms of being ready to deliver aircraft and launch commercial operations.

“It was on brand for us to wait for the IPO until we are ready because these can create a lot of churn and noise,” Clark said. “We wanted a solid foundation to deal with what happens when the wind blows. If you are chasing what people [i.e. investors] want to hear rather than what is needed you can get off kilter quickly and lose your footing.”