Applied Aerospace & Defense's stock plummeted 5.45% intraday on Wednesday as the newly public company began trading on the NYSE under the symbol AADX.

The decline came on the company's first day of trading following its $650 million initial public offering, which was priced at $20 per share. The stock opened at $20.75 but quickly lost ground amid broader market weakness, with major indexes retreating from record highs. Sentiment in the space sector was also dampened by news that SpaceX's highly anticipated IPO was priced at a valuation slightly below some investor expectations.

Applied Aerospace & Defense, which builds hardware for space launch and defense applications including drones and missile components, reported an operating loss in its most recent quarter despite showing sales growth. The company's debut coincided with a challenging market environment that weighed on investor appetite for new issues.