(Reuters) -Defense and space systems maker Karman Holdings, backed by Trive Capital, said on Wednesday that it is targeting a valuation of up to $2.6 billion in its New York initial public offering as the space sector prepares for policy changes under the new Trump administration.
The company and selling shareholders aim to raise up to $421 million by offering approximately 21 million shares priced between $18 and $20 each.
Karman develops payload protection and propulsion systems for defense and space programs for the Department of Defense and space sector initiatives.
The Trump administration is likely to do away with the White House’s National Space Council, a cabinet policy panel that lobbyists at Musk’s SpaceX have been pushing to axe, three people familiar with the plans told Reuters last month.
Karman’s listing comes at a time the U.S. IPO market is looking to recover from challenges in recent years, primarily due to high borrowing costs that have eroded investor confidence in new offerings and the impact of volatile markets on post-IPO performances.
However, the Federal Reserve’s easing of monetary policy, strong equity markets, and the prospect of a more favorable regulatory environment under U.S. President Donald Trump have boosted the confidence of startups considering listing their shares.
The Huntington Beach, California company said it generates revenue from more than 100 active programs, however, none of these programs generated more than 10% of total sales during the first nine months of 2024.
Karman will list its shares on the New York Stock Exchange under the ticker symbol “KRMN”.
Citigroup, Evercore ISI, RBC Capital Markets, William Blair and Baird are acting as the underwriters to the IPO.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid and Mrigank Dhaniwala)
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