Another day, another IPO. This week, Boresight Technology listed on the ASX and popped 50% on debut, closing around 45 cents against an issue price of 30 cents. The raise was modest at $8 million, leaving the company with a post-IPO market cap of roughly $41 million. Small company, small float, noisy debut. I want to be careful not to read too much into a first day run on thin volume.
What actually caught my attention is the underlying business. Boresight makes counter-drone training systems, which means they sell militaries the tools to practice shooting drones down rather than the weapons themselves. The drones they produce are deliberately cheap and expendable, the industry term is attritable, which is the point. You flood the training range with them, your operators get the repetitions, and losing one does not cost you a $2 million asset.
The numbers here are not nothing. More than 6,000 drones sold to 15 militaries across 12 countries. For a company this size, that is a meaningful customer list and it signals the product is past the proof of concept phase. Defence procurement is notoriously slow and bureaucratic, so landing 15 separate military customers suggests real operational credibility, not just a prototype that photographs well.
Where I would pump the brakes is valuation. At $41 million, the market is already pricing in a growth story. The counter-drone training market is real, particularly given how the wars in Ukraine and Gaza have shown every military in the world that drone warfare is no longer theoretical. But moving from 15 customers to the kind of scale that justifies this valuation requires winning larger contracts, and that pipeline is not yet visible from what I can see.
From my point of view, worth watching for now.
"I really believe that this is the future of warfare, like gunpowder was in the Hundred Years War, like an industrial revolution was in the First World War, and like nuclear capacity was in the Second World War."— Theo Francken, Belgian Defence Minister, Drone Summit, Riga, 2025
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