Firefly Aerospace, the Texas-based space tech firm, has secured a valuation of $6.32 billion after its shares surged 55.6% in their Nasdaq debut on Thursday. The company’s initial public offering (IPO) priced at $45 apiece, above its marketed range of $41-$43.
Firefly’s IPO value is a significant milestone for the company, which has faced challenges in the past, including bankruptcy and a CEO ouster. However, under new leadership, Firefly has made significant progress in its lunar business and military-space prospects.
The company’s successful lunar landing five months ago and rapid Pentagon launch with its medium-sized Alpha rocket have been major highlights. Its burgeoning space vehicle business line will offer maneuverable spacecraft for the US Space Force.
Firefly’s IPO has also contributed to a positive trend for US IPOs, which have picked up pace after tariff-driven volatility hampered listings in April. Analysts are bullish on the sector’s prospects, citing growing demand for private firms in the US space program.
The company expects to incur net losses for the next several years but has a backlog of $1.1 billion and over 30 planned launches under contract as of March 31. Investors will likely focus on backlog growth, gross margin trends, and Firefly’s cash runway post-IPO.
Firefly’s success is also seen as an opportunity to bolster the US military and civil space programs with the efficiency of for-profit companies. The company has had backing from US defense contractor Northrop Grumman in a partnership to jointly build a bigger rocket named Eclipse.
The IPO marks a significant moment for Firefly, which has come a long way from its tumultuous past. As CEO Jason Kim said, “The best companies go through hard times and challenges, but the best companies get back up and then continuously improve.”
Source: https://www.reuters.com/business/aerospace-defense