Firefly Aerospace Lifts IPO Price Range, Eyes $6 Billion Valuation
Firefly Aerospace, a space start-up backed by Northrop Grumman, has raised the price range for its US initial public offering (IPO). The Texas-based firm is now aiming for a valuation of up to $6.04 billion. This move highlights growing investor interest in the commercial space sector.
Revised IPO Pricing Reflects Strong Demand
Firefly plans to raise $696.6 million through the sale of 16.2 million shares. The company has set the price range between $41 and $43 per share, up from its earlier range of $35 to $39. This increase suggests strong interest from investors following a positive roadshow.
“A narrower band typically signals well-covered books on high demand and strong pricing conviction,” said Lukas Muehlbauer, an analyst at IPOX.
The IPO surge is being driven by the broader tech market. Recent listings, such as those by Figma and stablecoin firm Circle, have shown promising results. These outcomes have encouraged more executives to consider taking their companies public.
Market Conditions Support IPO Momentum
Although the July jobs report hinted at a potential labour market slowdown, analysts remain upbeat. They believe this could lead to interest rate cuts, reducing volatility and supporting a steady IPO pipeline into autumn.
“Rate relief should cushion the market and keep sentiment strong,” Muehlbauer added.
At the top of its new price range, Firefly’s valuation would represent a sharp rise from its last Series D round in November. At that time, the company was valued at just over $2 billion.
Government Support Boosts Firefly Aerospace
Firefly’s growth comes amid increased US government attention on space capabilities. Much of this focus has shifted to private companies. A notable example is the $175 billion Golden Dome programme, which has boosted private investment in space-based defence.
The changing dynamics between former President Donald Trump and SpaceX CEO Elon Musk have also played a role. With tensions rising, the administration appears to be distancing itself from Musk’s firm, which has long been a major launch provider for NASA and the US military.
Firefly is scheduled to price its IPO on Wednesday. It is expected to start trading on the Nasdaq the next day under the ticker symbol “FLY”.
with inputs from Reuters
