The Financial Post reports in its Thursday edition that a new crop of defence start-ups are emerging on Wall Street as governments raise military budgets and refill depleting supplies amid intensifying geopolitical tensions. A Bloomberg dispatch to the Post reports that of late, the Pentagon has been diversifying from traditional military contractors Northrop Grumman and Lockheed Martin, and looking into nimble companies that resemble technology upstarts that offer systems and materials that make fighting more cost-efficient. As a result, investors are getting excited about defence names. Canaccord's Austin Moeller says: "A lot of the companies that are going public right now are focused in areas that are high on the Pentagon's wish list. That's where all the budget dollars are flowing." Aerospace and defence IPO activity has rebounded in 2024, with two deals so far this year. Notably, Swarmer, which offers an artificial intelligence platform for coordinating drone swarms, saw its shares skyrocket nearly 1,000 per cent in its first three trading sessions post-IPO. Since 2019, 26 defence-related companies have debuted in IPOs, out of which at least eight jumped more than 30 per cent in their first day of trading.