Start-up rocket maker Firefly Aerospace has set the price of its upcoming initial public offering (IPO) at $35 to $39 per share, which values the company at $5.5 billion.
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The Texas-based space company said in an updated IPO prospectus that it’s planning to sell 16.2 million shares and raise up to $631.8 million in capital from the share sale. Firefly Aerospace plans to go public on the Nasdaq Composite (NDAQ) exchange under the ticker symbol “FLY,” though an exact date for its market debut hasn’t been set.
However, Firefly Aerospace is pushing forward with its IPO at a time when interest in commercial space companies is red-hot, as billionaire-led companies such as Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin capture the public imagination as they invest money into space activities ranging from satellites to spacecraft and rockets.
New Listings
Firefly Aerospace is the latest space company to test public markets. Space technology firm Voyager Technologies (VOYG) went public in June, while reusable rocket developer Innovative Rocket Technologies is planning to go public through an upcoming $400 million special purpose acquisition company (SPAC) merger.
Firefly says on its website that it makes rockets, lunar landers, and satellite-launching rockets. At the end of March, the company reported a sixfold increase in its annual revenue, from $8.3 million a year ago to $55.9 million. However, the company is not yet profitable and reported a year-over-year net loss of $60.1 million. Management has said their order backlog totals about $1.1 billion.
Firefly’s customers have included Lockheed Martin (LMT), L3Harris (LHX), and NASA. Lead underwriters on the IPO include Goldman Sachs (GS) and JPMorgan Chase (JPM).
Is LMT Stock a Buy?
As Firefly is not yet public, we’ll look instead at the stock of one of its main customers. The stock of Lockheed Martin has a consensus Hold rating among 16 Wall Street analysts. That rating is based on five Buy, 10 Hold, and one Sell recommendations issued in the last three months. The average LMT price target of $476.88 implies 13.19% upside from current levels.
