Investing in Space: Space IPOs are rearing their heads again

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It’s a brave person who calls a market closed or open, particularly for listings — you’ll forgive me if I’m not the one to make that plunge. But the gentle trickle of space IPOs since the start of the year, after a dearth of listings in recent years, isn’t going unnoticed.

Trive Capital-backed Karman Holdings, maker of defense and space systems, went public back in February with a valuation of nearly $4 billion as shares soared during their debut. Voyager Technologies clinched a $3.8 billion valuation two months ago, as the defense and space company’s stock opened 125% higher on Wednesday at $69.75 apiece, above its $31 offer price.

On Thursday, Northrop Grumman-backed Firefly Aerospace — whose Blue Ghost lander successfully touched down on the Moon earlier this year — surged in its Nasdaq debut under the ticker symbol FLY.

This might seem like a small step for some industries, but it’s a giant leap for traditional offerings for the space sector, where for some time players such as Intuitive Machines, Rocket Lab and AST SpaceMobile listed by way of mergers with special-purpose acquisition companies (SPAC)  — shell firms that pool their IPO proceeds to consolidate with a private company and take it public, bypassing some of the typical regulatory scrutiny. SPAC deals seemed on the decline after an initial 2020-2021 flurry, but are trending once more Stateside. To that end, reusable rocket maker Innovative Rocket Technologies has said it will go public through a $400 million merger with BPGC Acquisition, a SPAC backed by former U.S. Commerce Secretary Wilbur Ross.

The broader IPO landscape has been in flux. EY found that the global listings market “demonstrated resilience” in first-half 2025, with China now accounting for one-third of global IPO proceeds, while the U.S. led the pack with 109 IPOs and its strongest January-June performance since the peaks of 2021.

But recent geopolitical volatility triggered by the conflict in the Middle East and by Washington’s protectionist trade policies have cast a shadow over global appetite for dealmaking and going public, bankers have mentioned anecdotally. For its part, U.S. space research and tech-oriented M&A picked up to four deals totalling $280 million in the second quarter, according to Dealogic data shared with CNBC.

“A global IPO market rebound hinges on more cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation,” EY noted. “Companies aligned with national priorities and innovation, and those able to present a credible equity story with realistic valuations and flexible timing, are likely to succeed in navigating this complex environment.” 

Space companies, by definition, tick at least some of those boxes.

Lukas Muehlbauer, research analyst at IPOX, qualified this is “definitely a good time for Space IPOs,” with initiatives like the U.S.’ push for the Golden Dome missile interception system fueling high valuations.

“American space companies are well-insulated from tariffs on the revenue side, especially when predictable income streams are provided by U.S. Government contracts – a common feature for defense-adjacent firms,” he told CNBC by email. “Still, most firms in the sector are dependent on foreign-made satellite components, creating a vulnerability to cost increases and deployment delays caused by trade disputes.” 

He nevertheless warned that the “intensifying” competition in the private launch market — where companies are looking to reduce costs, particularly by deploying reusable tech and infrastructure — could create “downward pressure on costs.”

“This will be a key factor in lowering the sector’s high entry barriers, making a new generation of space-based business models commercially feasible,” Muehlbauer noted.

The timing is also ripe, with space ventures generating a fair bit of hype over their growth potential. Last month, a report from Seraphim Space found investment in space startups soared to $3.1 billion over the April-June period, up sharply from $2.1 billion over the January-March stretch. 

“Investors understand the risks in this sector, but they also understand the scale of what is being built. These companies are not being valued on near-term cash flow, but on their ability to deliver long-term strategic infrastructure,” Cristiano Dalla Bona, who heads North America ECM analysis at Mergermarket, said in emailed comments. “What we are seeing now is an enthusiastic public investor base. Still, the credibility and visibility on growth of each new candidate will likely be scrutinized.”

The sector has also been firmly in the public eye, with headlines ranging from NASA layoffs, Elon Musk’s vocal involvement with — and later explosive exit from — the White House and Trump’s push for the Golden Dome missile interception system. And, talking about going  public, NASA’s even infiltrated civilian households and began streaming on Netflix this summer with the recent live broadcast of the SpaceX Crew-11 launch.

SpaceX delivers Crew-11 to the ISS — A four-person astronaut team reached the International Space Station following a 15-hour flight. — Sky News

Air leak continues in Russia’s ISS module — Despite efforts to rein in losses, the Russian segment of the International Space Station is still suffering from air leaks, which were first detected in 2019. — The Register

First quantum computer launched in space — A satellite carrying a small quantum computer entered orbit in late June, with its hardware now operational and demonstrations of its capabilities pending. — Science News

Why NASA will plunge the International Space Station in the ocean in 2031 — NASA is planning the controlled deorbit of the International Space Station in the remote Point Nemo part of the Pacific Ocean, after roughly three decades of the space lab’s service. The Times of India explores why. — Times of India

Roscosmos, NASA extend ISS operations until 2028 — The heads of Roscosmos and NASA have agreed to further the two agencies’ cooperation on operating the International Space Station until 2028. Relations between the two space agencies and between Washington and Moscow more broadly have been strained in recent years by Russia’s war in Ukraine. — France24

Rheinmetall and Lockheed Martin carry out GMARS artillery system tests — Rheinmetall and Lockheed Martin’s Global Mobile Artillery Rocket System (GMARS), which is compatible with NASA’s M270 and HIMARS, is undertaking tests in the U.S. — Defence Industry Europe

Japan wants to set up international regulation for space debris removal — Tokyo is looking to establish international rules for the removal of human-made space debris that can pose risks, with an eye to lead discussions by the time of the 2026 meeting of the U.N. Committee on the Peaceful Uses of Outer Space, officials have said. — Kyodo News

Israel sets up new initiative for space tech development — Israel is launching a NIS 40 million ($11.73 million) program for start-ups and established firms to boost domestic advances in space tech and research. — The Jerusalem Post

Lockheed Martin looks to test space-based missile interceptors by 2028 — Lockheed Martin has set a 2928 deadline to demo a space interceptor able of targeting hypersonic missile — a key component of the proposed Golden Dome anti-missile system. — SOFX

NASA to set timeline for nuclear reactor on the Moon — NASA interim head Sean Duffy will set out a 2030 deadline for the space agency to establish a 100-kilowatt nuclear reactor on the Moon, Politico has learned. — Politico

Firefly Aerospace rises more than 30% in Nasdaq debut – Firefly Aerospace’s stock added more than 34% in the company’s debut under the ticker FLY. – CNBC

Space company listings are bucking the trend — Some industry voices claim the spate of space companies that have gone public or intend to do so mark an outlier, rather than a broader movement. — Space News

Eutelsat posts revenue surge, forecasts GEO decline — French satellite operator Eutelsat beat expectations in yearly results to the end of June, with revenues up 84%. The company nevertheless flagged a 7% drop in geostationary revenues over the period. — Space News

Vaya Space clinches $1.2 million hypersonic propulsion contract — Vaya Space has secured a $1.24 million contract toward the development of the Hybrid-Fueled Ramjet hypersonic missile propulsion system. — SatNews

Voyager Technologies posts first earnings after IPO — Voyager Technologies reported a worse-than-expected loss of $0.60 per share in its second-quarter results, despite revenues exceeding forecasts. — The Motley Fool

Aug. 8 — SpaceX Crew-10 to return to Earth from the International Space Station aboard the Dragon Endurance

Aug. 9 — SpaceX’s Falcon 9 to launch with Starlink satellites out of California

Aug. 12 — United Launch Alliance’s Vulcan Centaur to depart on the United States Space Force (USSF)-106 mission out of Florida

Aug. 12-13 — Arianespace’s Ariane 6 to take off with the European Organization for the Exploitation of Meteorological Satellites’ MetOp-SG A1 out of the French Guiana

Aug. 13-14 — SpaceX’s Falcon 9 rockets head out with Starlink satellites out of Florida and California