Firefly’s stock value far exceeds the predicted price

When Firefly announced it was going public at the end of July, it predicted the stock price would range from $35 to $39, with the initial public offering raising about $600 million in capital for the company. Less than a week later it revised these predictions upward to $45 and about $700 million.

When trading opened yesterday, these numbers were still too low, with the stock immediately trading at $70 per share> and raising almost $900 million.

The space and defense technology company reached a peak valuation of more than $9.84 billion during intraday trading, after its shares began trading at $70 — up more than 55% from the initial public offering price of $45. The stock climbed as high as $73.80 during the session before closing at $60.35.

Firefly sold more than 19 million shares in the offering, raising at least $868 million. By the end of trading Thursday, total volume had approached 30 million shares.

This confidence and enthusiasm by Wall Street reflects Firefly’s success this year in becoming the first private company to land an unmanned spacecraft softly on the Moon. It also suggests the market expects the company’s orbital tug and rockets to succeed. Though its Alpha rocket has had a mixed record of success, its new larger Eclipse rocket is being built in partnership with Northrop Grumman, which has invested $50 million into its development.

Firefly’s stock sells at price higher than expected

Firefly began selling stock to the public today on the Nasdaq stock market, with the price per share immediately rising to $45 per share, above the expected range of $41-$43, suggesting it could raise as much as$868 million in investment capital.

The strong interest in the stock by investors suggests there is great confidence in the company’s future, following the successful landing of its Blue Ghost lunar lander earlier this year. It has won a total of four lander contracts from NASA. The company also has won both commercial and NASA contracts in connection with its Elytra orbital tug. It has had mixed results with its Alpha rocket, experiencing both launch failures as well as successes, but it is also developing a larger rocket in partnership with Northrop Grumman.

This enthusiasm is noteworthy in that the company is not yet in the black, though its revenues have been increasing.

For the quarter that ended in March, Firefly reported a net loss of about $60.1 million, widening from $52.8 million in the year-ago period. Revenue jumped sixfold to $55.9 million from $8.3 million. Its backlogged totaled about $1.1 billion.

Overall it appears Firefly’s future is solid, suggesting it will join SpaceX and Rocket Lab as a major new space player in the coming years.

Firefly hopes to raise more than $600 million in initial stock offering

The rocket startup and lunar lander company Firefly yesterday posted details about its initial public stock offering, designed to hopefully raise more than $600 million.

Firefly Aerospace, a market leading space and defense technology company, today announced that it has launched the roadshow for its proposed initial public offering of 16,200,000 shares of its common stock. In addition, Firefly intends to grant the underwriters a 30-day option to purchase an additional 2,430,000 shares of its common stock at the initial public offering price, less underwriting discounts and commissions. The initial public offering price is expected to be between $35.00 and $39.00 per share.

The company stated it would use the money “to repay outstanding borrowings under its credit agreement, pay any accrued and unpaid dividends on certain series of its preferred stock, and for general corporate purposes.”

The company has not yet announced the date when this stock offering will become available for purchase.

If you are hoping to buy stock in Elon Musk’s SpaceX company, Musk now says you will have to wait until they have begun regular missions to Mars.

If you are hoping to buy stock in Elon Musk’s SpaceX company, Musk now says you will have to wait until they have begun regular missions to Mars.

This is a change from earlier comments by Musk, which to me suggests that the company’s recent successes and sales has made it profitable enough that he’d rather maintain control than get cash from an IPO. By keeping the company private, Musk can avoid being beholden to stockholders. He can do what he wants.