Firefly Aerospace, a PE-backed maker of rockets and lunar landers, has set its IPO price range at $35 to $39 per share, according to an updated prospectus filed Monday.
The defense- and space-tech company based outside of Austin plans to offer 16.2 million shares, which could raise gross proceeds of $567 million to $631.8 million before underwriting expenses.
Firefly could achieve a market capitalization of approximately $5.58 billion at the top end of the expected price range, according to The Wall Street Journal.
AE Industrial Partners, a PE firm that invested in Firefly in 2022, will retain a roughly 41% stake in the company after the IPO, the prospectus shows.
The debut of Firefly, which serves government and commercial missions to space, is yet another US-based IPO in the defense- and space-tech sectors so far this year. Other notable listings include Voyager Space, backed by Palantir, and Karman Space & Defense, backed by Texas-based PE firm Trive Capital.
While the number of IPOs matches that of 2024, this year’s offerings are commanding higher valuations, which bodes well for exits in this industry and indicates investors’ growing confidence in its long-term potential, according to PitchBook emerging tech analyst Ali Javaheri.
“Defense budgets are surging amid rising geopolitical tensions, creating a steady pipeline of government contracts for dual-use and space technologies,” he said.
He added that agencies like the Department of Defense and NASA are increasingly exploring startups that can deliver faster, cheaper and more innovative solutions than traditional primes, as these younger companies are less encumbered by bureaucracy and can often create better products.
Firefly has shown steep growth. Its revenue soared 572% year-over-year to $55.9 million in Q1, per the prospectus. Its gross profit improved to $2.22 million, representing a significant turnaround from a $2 million gross loss in Q1 of the previous year.
However, the impressive growth comes at a cost, with the company reporting a net loss in Q1 of $60.8 million.
Featured image of Firefly Aerospace’s headquarters by Houston Chronicle/Getty Images
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