Firefly Aerospace seeks $5.5 billion valuation in IPO as US area race heats up
By Manya Saini
(Reuters) -Northrop Grumman-backed area know-how startup Firefly Aerospace is focusing on a valuation of about $5.5 billion in its U.S. preliminary public providing, as investor urge for food for high-growth sectors exhibits indicators of a sustained rebound.
The Cedar Park, Texas-based maker of spacecraft and launch automobiles is aiming to promote 16.2 million shares, priced between $35 and $39 apiece, to lift as a lot as $631.8 million, a submitting confirmed on Monday.
The launch comes because the U.S. IPO market exhibits indicators of regular restoration in 2025 after a droop of virtually three years, as easing rates of interest, improved market circumstances and a backlog of high-growth firms revive investor curiosity.
A number of notable listings, together with neo-bank Chime and stablecoin issuer Circle, have rekindled optimism in current weeks, with extra companies making ready to check the waters within the second half of the yr.
“Though it is not driving on the hype of the present cryptocurrency and AI craze, Firefly nonetheless guarantees progress, represents a diversified portfolio publicity and performs to a protection funding theme that has been sizzling throughout each the IPO market and wider equities,” mentioned Samuel Kerr, head of fairness capital markets at Mergermarket.
SPACE RACE
A number of billionaires and personal companies are fueling a brand new area race within the U.S., pouring cash into rockets, satellites and lunar missions, together with Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin.
With NASA relying extra on business partnerships and protection spending rising, the area business is quickly changing into a high-stakes area for technological dominance, nationwide safety and financial alternative.
Firefly Aerospace’s IPO aligns with two main funding themes, the commercialization of area exploration and the rising position of area in international protection, Kerr mentioned.
Area startups continued to attract investor {dollars} within the April-June interval, which was the second-strongest quarter on file for funding, an business report confirmed earlier this month.
Firefly Aerospace succeeded in its first try to land on the moon in March with its uncrewed Blue Ghost spacecraft. It expects the Blue Ghost lander to fly annual missions to the moon.
The corporate notched a valuation of over $2 billion in a November 2024 funding spherical, when it had raised $175 million.
Earlier this yr, U.S. protection contractor Northrop Grumman additionally invested $50 million within the startup.
Firefly Aerospace has solid collaborations with business giants Lockheed Martin and L3Harris as nicely.
It’s going to commerce on the Nasdaq beneath the ticker image ‘FLY’ after the IPO closes.