Electro Optic Systems Holdings' stock price soared 5.11% during intraday trading on Friday, reflecting significant investor interest in the defence technology company.

The stock movement follows the company's announcement of a substantial capital raising initiative to fund strategic growth. Electro Optic Systems has raised A$150 million through an institutional placement and A$40 million via a follow-on offering, with plans for an additional A$25 million Share Purchase Plan. These funds are earmarked to finance the acquisition of MARSS, a UK-based specialist in counter-drone and autonomous maritime systems.

Additionally, the company has strengthened its governance by appointing retired senior Australian Defence leaders Catherine Roberts and Kathryn Toohey to its board. These developments are seen as enhancing Electro Optic Systems' positioning in defence and space technology markets while addressing execution risks associated with its expanding portfolio.