Firefly Aerospace seeks a $5.5 billion valuation in IPO as US space races get hot

By Manya Saini

(Reuters) – Notetrop Grumman-assisted space technology startup Firefly Aerospace is targeting a valuation of around $5.5 billion in its initial US offer as investors’ appetites in the high-growth sector show signs of sustained rebounds.

Cedar Park, the maker of Texas spacecraft and launch vehicle, aims to raise $631.8 million by selling between $39 and $39 at a price of $16.2 million.

The launch will occur as the US IPO market shows signs of a steady recovery in 2025 as it has nearly three years of poor performance, easing interest rates, improving market conditions and a backlog of growing companies revives investors’ profits.

Several notable lists, including the Neo-Bank Chime and the Stablecoin Issuer Circle, have rekindled optimism in recent weeks.

“While we’re not riding on the current cryptocurrency and AI trend hype, Firefly still promises growth, represents a diverse portfolio exposure, and challenges the hot topic of defence investment in both the IPO market and the broader stocks.”

Space Race

Several billionaires and private companies will fuel new space races in the US and pour money into rockets, satellites and lunar missions, including Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin.

As NASA relies on increased commercial partnerships and defense spending, the space industry is rapidly becoming a high-stakes sector for technological control, national security and economic opportunities.

The Firefly Aerospace IPO coincides with two major investment themes: the commercialization of space exploration and the growing role of space in global defense, Kerr said.

Space startups continued to attract investors’ dollars during the April-June period. This was the second-strongest quarter in fundraising records, an industry report showed earlier this month.

Firefly Aerospace made its first attempt to land on the moon in an irregular blue ghost spacecraft in March. It expects the Blue Ghost Lander to fly its annual mission to the moon.

The company received a valuation of over $2 billion in the November 2024 funding round, raising $175 million.

Earlier this year, US defense contractor Northrop Grumman also invested $50 million in the startup.

Firefly Aerospace has fake a collaboration between industry giant Lockheed Martin and L3 Harris.

After the IPO closes, exchange it with the Nasdaq under the ticker symbol “Fly”.