Karman Space and Defense Announces IPO Plans, Aiming to Raise $400 Million

Insider Brief

• Karman Space and Defense has revealed its terms for an upcoming initial public offering with plans to raise $400 million by offering 21.1 million shares, with 60% of those shares coming from secondary offerings.
• The price range for the IPO is set between $18 and $20 per share, and at the midpoint of this range, Karman would have a market value of $2.5 billion.
• Citigroup and Evercore ISI are acting as book-running managers for the offering, with RBC Capital Markets, William Blair, and Baird serving as joint bookrunners.

Karman Space and Defense, a company specializing in mission-critical systems for defense and space programs, has revealed its terms for an upcoming initial public offering (IPO). The Huntington Beach, CA-based company reportedly plans to raise $400 million by offering 21.1 million shares, with 60% of those shares coming from secondary offerings. The price range for the IPO is set between $18 and $20 per share, and at the midpoint of this range, Karman would have a market value of $2.5 billion.

The company, currently operating as Karman Space and Defense, designs, tests, manufactures, and sells critical systems for both defense and space sectors. Karman’s offerings include integrated solutions in payload protection, propulsion, and interstage systems, which are deployed across various programs supporting Department of Defense and space initiatives. These solutions are divided into three main categories: Payload Protection and Deployment Systems, Aerodynamic Interstage Systems, and Propulsion Systems. Karman’s products support three key end markets: Hypersonics & Strategic Missile Defense, Missile & Integrated Defense Systems, and Space & Launch.

Founded in 1977, Karman reported $331 million in revenue for the 12 months ending September 30, 2024. The company intends to list its shares on the New York Stock Exchange under the ticker symbol “KRMN.” The IPO is expected to price during the week of February 10, 2025.

Citigroup and Evercore ISI are acting as book-running managers for the offering, with RBC Capital Markets, William Blair, and Baird serving as joint bookrunners.

The registration statement, including the prospectus, has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. No shares can be sold or offered until the registration is approved.

Image Credit: Karman Space and Defense