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Firefly prices IPO at $45 apiece vs proposed range of

$41-$43

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IPO values space tech firm at $6.32 billion

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Private firms increasingly critical to US space program

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Analysts bullish on sector's prospects

By Ateev Bhandari and Arasu Kannagi Basil

Aug 7 (Reuters) - Firefly Aerospace ( FLY ) will begin trading

on the Nasdaq on Thursday after raising $868.3 million in the

largest U.S. listing this year by a space tech company.

Firefly - which became the second private enterprise to

achieve a lunar landing five months ago - priced the IPO at $45

per share, above an already upsized range, securing a valuation

of $6.32 billion.

That is ahead of both Trive Capital-backed Karman Holdings

and Voyager Technologies ( VOYG ), which went public

earlier this year.

U.S. initial public offerings have picked up pace after

tariff-driven volatility hampered listings in April, reigniting

a long-awaited recovery of first-time share sales.

"I think we will continue to see strong debuts for large-cap

IPOs for the remainder of the year," said Ross Carmel, partner

at law firm Sichenzia Ross Ference Carmel.

"In the event the Federal Reserve decides to cut interest

rates, I think we can see this trickle down to both mid-cap and

small-cap IPOs as well."

Formed in 2017, Firefly specializes in cost-effective launch

vehicles and spacecraft, including lunar landers, to provide

space launch and mission services.

While Houston-based Intuitive Machines ( LUNR ) was the

first private firm to reach the moon last year, its Odysseus

lander made a lopsided touchdown. Firefly's Blue Ghost landed

safely on the moon in March.

"Firefly has already demonstrated responsive launch

capabilities and delivered a lunar payload-proof points that

matter to the Space Force and NASA," said Ali Javaheri, emerging

technology analyst at PitchBook.

The company had a backlog of roughly $1.1 billion and more

than 30 planned launches under contract as of March 31.

"Investors will likely focus on backlog growth, gross margin

trends as production scales, and Firefly's cash runway

post-IPO," Javaheri said.

The company, however, expects to incur net losses for the

next several years, according to filings.

SPACE SCRUTINY

Rising geopolitical tensions and deteriorating international

relations have put a spotlight on space and defense contractors,

as U.S. President Donald Trump aims to bolster military and

civil space programs with the efficiencies of for-profit

companies.

Elon Musk's SpaceX - which has about $22 billion in

government contracts - has grown critical to the global

satellite network, potentially managing a crucial element of the

"Golden Dome" missile shield planned by Trump.

Musk's latest tensions with Trump, however, have prompted

officials to solicit bids from other rocket and tech

manufacturers, with some citing national security concerns

around concentrated dependency.

In early 2022, pressure from certain U.S. government bodies

led to Ukrainian entrepreneur Max Polyakov divesting his

ownership in Firefly to AE Industrial Partners, which currently

owns more than 40% of the Texas-based company.

Since then, Firefly has attracted a robust mix of investors.

"Northrop Grumman's ( NOC ) involvement signals alignment with

national security priorities, while Mitsui's presence opens

pathways to Asia and helps shore up supply-chain resilience,"

PitchBook's Javaheri said.

U.S. defense contractor Northrop Grumman ( NOC ), which

invested $50 million into Firefly in May, is one of the three

suppliers of solid rocket motors to the U.S.

Goldman Sachs, J.P. Morgan, Jefferies and Wells Fargo

Securities are the lead underwriters for the IPO.