Firefly Aerospace Aims for $5.5 Billion Valuation with IPO

Cedar Park, Texas — Firefly Aerospace, a space technology startup backed by Northrop Grumman, is targeting a valuation of about $5.5 billion in its upcoming initial public offering (IPO). The company plans to sell 16.2 million shares at a price between $35 and $39 each, potentially raising up to $631.8 million, according to a filing made on Monday.

This launch comes as the U.S. IPO market is recovering after nearly three years of decline. The rebound is fueled by easing interest rates and improving market conditions, alongside a backlog of high-growth companies looking to attract investors. Notable recent listings, such as neo-bank Chime and stablecoin issuer Circle, have renewed optimism among potential investors.

Samuel Kerr, head of equity capital markets at Mergermarket, stated, “Although it isn’t riding on the hype of the current cryptocurrency and AI craze, Firefly still promises growth.” He emphasized that Firefly provides diversified portfolio exposure and aligns with a defense investment theme that remains strong in today’s market.

With significant funding from billionaires and private firms, the U.S. is witnessing a new space race. Companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are pouring resources into rockets, satellites, and lunar explorations. NASA’s increasing reliance on commercial partnerships signifies the growing importance of the space industry in terms of national security and economic potential.

Firefly Aerospace’s IPO also intersects with two significant investment themes: the commercialization of space exploration and the rising role of space in global defense, according to Kerr. Recent reports show the April-to-June period was the second-strongest quarter on record for funding space startups.

In March, Firefly attempted its first lunar landing with the uncrewed Blue Ghost spacecraft. The company expects to conduct annual missions to the moon with the Blue Ghost lander. In a November 2024 funding round, Firefly achieved a valuation of $1.3 billion after raising $175 million, with Northrop Grumman investing an additional $50 million earlier this year.

Firefly has also partnered with industry leaders like Lockheed Martin and L3Harris. Following the IPO, the company will trade on the Nasdaq under the ticker symbol ‘FLY.’ Leading the underwriting are Goldman Sachs, J.P. Morgan, Jefferies, and Wells Fargo Securities.