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June 3 (Reuters) - Applied Aerospace & Defense AADX.N achieved a valuation of $3.54 billion after its shares opened 3.8% above the offer price in their market debut on Wednesday, the latest in a streak of new listings from defense firms.

The stock opened at $20.75 apiece, compared with the offer price of $20. The Huntsville, Alabama-based space and defense hardware provider raised $650 million in the IPO by selling 32.5 million shares within the marketed range of $18 to $21 ​apiece.

Defense tech has been a recurring theme in the IPO market since April as issuers look to capitalize on structural tailwind stemming from the Middle East conflict.

"We're seeing generational demand across space and defense. The world is very unstable. We see a very strong demand signal to provide highly engineered systems, both for replenishment, but also for next-gen technology," CEO Trip Ferguson told Reuters.

Middle-market-focused buyout firm Greenbriar Equity Group combined Applied Aerospace and PCX Aerosystems last year to form Applied Aerospace & Defense.

Applied, whose legacy businesses have been operating for more than a century, makes complex hardware such as solid rocket motor cases, flight control surfaces, fuselage assemblies and engine shafts, for aerospace and defense markets.

The firm is investing in areas such as facility expansions and capital equipment to meet demand, its chief growth officer Chris Rogers said. It is looking at potential acquisitions but the bar is high in the near term, he said.

"We are not looking at scale for scale's sake. We are really focused on strategic fit."

Applied has long-standing supplier relationships with the likes of SpaceX and Boeing BA.N. It supplies vital components such as nose cones, fairings, protective covers, and payload adapters for SpaceX's Falcon 9 rocket.

Business from Applied's top three customers accounted for roughly 59% of its revenue last year.