*

Firefly prices IPO at $45 apiece vs proposed range of

$41-$43

*

IPO values space tech firm at $6.32 billion

*

Private firms increasingly critical to US space program

*

Analysts bullish on sector's prospects

(Updates headline and paragraphs 1-2 with latest indications)

By Ateev Bhandari, Arasu Kannagi Basil and Joey Roulette

Aug 7 (Reuters) - Firefly Aerospace ( FLY ) shares were

indicated to open nearly 29% above their initial public offering

price on Thursday, as investors continue to pour capital into

firms aiding expansion of the U.S. space and defense program.

If the stock starts to trade at the last indicated price of

$58 apiece on the Nasdaq, it could potentially value Firefly at

nearly $8.15 billion - marking a striking turnaround for a

once-beleaguered company.

Firefly, which became the first private enterprise to

achieve a successful lunar landing five months ago, raised

$868.3 million in the IPO at $45 per share, above its already

upsized marketed range.

The company secured a valuation of $6.32 billion, ahead of

both Trive Capital-backed Karman Holdings and Voyager

Technologies ( VOYG ), which went public earlier this year.

"We at Firefly have had a lot of successes toward going

public," CEO Jason Kim told Reuters on Thursday, noting the

company's breakthrough moon landing, a rapid Pentagon launch

with its medium-sized Alpha rocket in 2023 and a burgeoning

business line that will offer maneuverable space vehicles for

the U.S. Space Force.

U.S. IPOs 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.

Firefly has come a long way from a tumultuous past,

including a bankruptcy in 2017 and a CEO ouster last year.

Its bankruptcy led to billionaire Ukrainian investor Max

Polyakov's Noosphere Ventures acquiring a majority stake in the

company that, four years later, was forced to be sold to AE

Industrial Partners over national security concerns raised by

the U.S. government.

Formed in 2014 by Tom Markusic, now its chief technology

officer, Firefly started as a launch company centered on its

medium-sized, 95-foot-tall Alpha rocket. It has since expanded

into spacecraft and lunar lander business to provide mission

services for governments and a nascent lunar market.

"The best companies go through hard times and challenges,

but the best companies get back up and then continuously

improve," said Kim, who took the helm at Firefly last year after

leading the Boeing-owned small satellite firm Millennium Space

Systems.

While Houston-based Intuitive Machines ( LUNR ) was the

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

lander made a lopsided touchdown, foiling most of its onboard

customers' mission objectives.

Firefly's Blue Ghost landed safely on the moon in March, a

milestone for a scrappy unit that was once tertiary to other

business goals. It was also a breakthrough moment for NASA and

its contracting model designed to stimulate private missions to

the moon.

"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 defense shield planned by Trump.

SpaceX's rapid growth in the space industry and Musk's

latest tensions with Trump, however, have prompted officials to

open talks with other rocket and tech manufacturers, with some

citing national security concerns around concentrated

dependency.

Kim said Firefly is eyeing a potential role in the Golden

Dome program, noting its Alpha rocket could be used to launch

test missile targets for the system or its Elytra spacecraft

platform could host space-based missile interceptors envisioned

by the program.

"We will be able to rate up our production line to meet that

growing demand," Kim said of Golden Dome.

Firefly has had backing from U.S. defense contractor

Northrop Grumman ( NOC ) in a partnership to jointly build a

bigger rocket named Eclipse, set for a debut launch from Wallops

Island, Virginia, as early as 2026.

"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.

Northrop is one of the three suppliers of solid rocket

motors to the U.S.