(Reuters) -Northrop Grumman-backed Firefly Aerospace raised the proposed price range for its U.S. initial public offering on Monday and is now targeting a valuation of up to $6.04 billion in its U.S. listing, underscoring investor interest in space-related ventures.

The Texas-based space startup aims to raise $696.6 million by selling 16.2 million shares priced between $41 and $43 each. This compares with its prior proposed range of $35 to $39 per share.

Executives appear to be regaining their appetite for IPOs, buoyed by strong market debuts from tech-focused companies like design software firm Figma and stablecoin-issuer Circle.

Despite concerns over a potential labor market slowdown, resilient consumer spending and lower-than-expected tariffs have pushed equity markets to record highs.

At the top end of its revised range, Firefly's valuation would represent a significant jump from its Series D funding round in November, which valued it at more than $2 billion.

U.S. President Donald Trump has renewed federal focus on space capabilities, which have largely been outsourced to private-sector firms.

Major defense initiatives - including the $175 billion Golden Dome space-based defense program - have further spurred private investment into the sector.

Additionally, the recent tensions between Trump and SpaceX CEO Elon Musk have prompted a significant shift in the administration's relationship with Musk's company, which is a leading launch provider for the U.S. military and NASA.

Firefly is scheduled to price the deal on Wednesday and is expected to begin trading on the Nasdaq under the ticker symbol "FLY" the following day.

Goldman Sachs, J.P. Morgan, Jefferies and Wells Fargo Securities are the lead underwriters for the IPO.