Astroscale Holdings Sees 51% Surge in Shares on Debut
Shares of Japanese startup Astroscale Holdings (186A.T) jumped 51% in their Tokyo growth market debut on Wednesday. The stock opened at 1,281 yen per share, significantly higher than the initial public offering (IPO) price of 850 yen. This values the company at 145 billion yen ($934 million).
Milestone for Space Debris Removal
Astroscale’s CEO, Nobu Okada, described the listing as a significant milestone in their mission to tackle the global problem of space debris. The startup, founded in 2013, has received support from the governments of Japan, the United States, and Britain. Its technology aims to remove orbital debris and extend the operational life of satellites.
The company’s orbital rendezvous technology and commercial growth potential have attracted strong investor interest. Demand for shares was about 30 times the offer size. Okada, a former Japanese finance ministry official, emphasised the importance of multinational presence and public sector clients in driving this interest.
Strong IPO Performance
Astroscale sold 12.49 million shares in Japan and 9.68 million shares internationally. The IPO price was set at the top of the indicated range of 750-850 yen. Additionally, there is a greenshoe option for underwriters to sell 3.12 million more shares if demand increases.
Despite the strong IPO performance, Astroscale reported a 9.2 billion yen consolidated loss for the year ending in April 2023. Chief financial officer Nobuhiro Matsuyama did not specify when the company expects to become profitable.
Growing Interest in Japanese Space Industry
Astroscale’s IPO follows the public listings of moon explorer ispace (9348.T) and radar satellite maker iQPS (5595.T) last year. Investors, particularly retail traders, are increasingly interested in Japanese space companies supported by government policies.
The Japanese government has committed billions of yen in space grants and contracts to private firms. This is part of a strategy to enhance national security and expand the domestic space industry to 8 trillion yen by the early 2030s.