Aug 6 (Reuters) - Northrop Grumman-backed Firefly

Aerospace priced its upsized U.S. initial public offering at $45

per share on Wednesday, raising $868.3 million, and indicating

strong demand for the buzzy space technology startup that put a

lander on the moon.

Firefly sold about 19.3 million shares priced above its

already raised marketed range of $41 and $43 apiece. Previously,

it had planned to sell 16.2 million shares of its stock.

This values Cedar Park, Texas-based Firefly Aerospace at

about $6.32 billion.

In a nascent but rapidly growing commercial space industry,

Firefly's IPO has attracted investor attention because it

successfully landed its uncrewed Blue Ghost spacecraft on the

moon in its first attempt in March.

U.S. President Donald Trump's focus on commercializing space

technology and safeguarding the national interests in space has

attracted venture capital firms and billionaires.

Elon Musk's SpaceX - the most valuable private company in

the world - has become a critical part of the U.S. satellite

network, even prompting a need across the government to look for

more contractors.

The U.S. government is betting that diversifying its

contractor base will foster innovation and cut the huge costs of

sending rockets to space, as well as reduce over-reliance on a

single provider for critical missions.

NASA's procurement process now includes new entrants such as

Firefly Aerospace and Sierra Space, alongside legacy companies,

leveraging commercial partnerships for lunar landers, space

station modules and cargo deliveries.

While space-related IPOs have been scarce in recent years,

the tide is starting to turn in 2025. Firefly's listing comes on

the heels of the successful New York flotations of space and

defense firms Karman ( KRMN ), AIRO Group ( AIRO ) and Voyager

.

As of Tuesday's close, shares of Karman ( KRMN ) have more than

doubled from their offer price, while Voyager has gained

10%.

"Given Firefly and the success of Voyager, I think you are

going to see several more space-related companies test the

waters of a public offering," said Ross Carmel, partner at law

firm Sichenzia Ross Ference Carmel.

TO THE MOON

Formed in 2017, Firefly designs and manufactures small- to

medium-lift launch vehicles, lunar landers and orbital vehicles.

It had a backlog of roughly $1.1 billion and over 30 planned

launches under contract as of March 31.

While Houston-based Intuitive Machines' ( LUNR ) Odysseus

lander was the first private lander to reach the moon last year,

it made a lopsided touchdown, landing mostly intact but dooming

many of its onboard instruments. Firefly's was the second, but

its Blue Ghost spacecraft landed safely, reaching the moon's

surface a month and a half after launching atop a SpaceX rocket

from NASA's Kennedy Space Center in Florida.

Last month, Firefly secured a $176.7 million contract to

deliver five NASA payloads to the Moon's South Pole in 2029.

Firefly was valued at more than $2 billion in a 2024 funding

round. The company's backers include aerospace-focused private

investment firm AE Industrial Partners.

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

invested $50 million into Firefly to aid the production of their

jointly developed rocket, is one of three suppliers of solid

rocket motors (SRMs) to the United States.

Firefly is expected to begin trading on the Nasdaq under the

ticker symbol "FLY" on Thursday.

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

Securities are the lead underwriters for the IPO.