(Reuters) - Karman Holdings ( KRMN ) was valued at nearly $4 billion after its shares rose 36.4% in NYSE debut on Thursday, signaling strong investor appetite for defense and space companies when market expansion is expected under the new Trump administration.

The defense and space systems maker's stock opened at $30 apiece, compared with the initial public offering price of $22.

The IPO markets are on the road to recovery following a cold stretch spanning more than two years, as investors expect rising corporate profits on potential deregulation and tax-cuts under the presidency of Donald Trump.

Karman's ( KRMN ) robust debut presents a change of pace after lukewarm first-day performances from some high-profile listings such as Venture Global and Smithfield Foods in the last few weeks.

The Huntington Beach, California-based company - backed by Trive Capital - and some of its existing shareholders raised $506 million in an upsized IPO. They sold 23 million shares above the marketed range of $18 to $20 each.