All good space stocks start as Space IPOs.
The growing space industry is a new frontier for investors, and an aptly termed space IPO is the beginning of that journey.
First a primer. An IPO is an Initial Public Offering to the both large investors and retail investors. An IPO is the process through which a private corporation becomes publicly traded, by offering its shares to the public for the first time, via an underwriter; usually an investment bank who manages the IPO process and takes a fee (5 to 7%). The underwrite determines the price at which the shares will be sold, based on the anticipated demand and the company’s valuation. They can also conduct roadshows and carefully tailored promotions of the company. Post-IPO, the company’s shares are traded on one or more stock exchanges, where they can be bought and sold by the general investor.
As of writing, several space companies are preparing to IPO:
