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Drone tech developer ParaZero Technologies files and sets terms for a $16 million US IPO, offering warrants

May 24, 2022

ParaZero Technologies, which is developing autonomous parachute safety systems for commercial drones, filed on Tuesday with the SEC to raise up to $16 million in an initial public offering.

The Kiryat Ono, Israel-based company plans to raise $16 million by offering 2.5 million units at a price range of $5.20 to $7.20. Each unit consists of one share of common stock and two warrants, exercisable at the IPO price. At the midpoint of the proposed range, ParaZero Technologies would command a full diluted market value of $58 million.

Because the company plans to offer units with warrants attached, ParaZero Technologies will be excluded from Renaissance Capital's 2022 IPO stats.

ParaZero is an aerospace company focused on drone safety systems and engaged in designing, developing, and providing autonomous parachute safety systems for commercial drones. Its patented technology, the SafeAir system, is designed to protect hardware, people, and payload in the event of an in-flight failure.

ParaZero Technologies was founded in 2013 and booked $1 million in revenue for the 12 months ended December 31, 2021. It plans to list on the Nasdaq under the symbol PRZO. The company filed confidentially on March 11, 2022. Aegis Capital Corp. is the sole bookrunner on the deal.