Seraphim Space’s (SSIT) C-share issue has received a timely boost from satellite company HawkEye 360 announcing a $2.4bn US flotation.
The £528m investment trust says the initial public offer (IPO) in New York of the operator of the largest constellation of radio-frequency sensing satellites, its fourth biggest holding at 10.1% of assets, could add £11.1m or 3.3% to net asset value (NAV) and lift NAV per share by 4.66p.
Mark Boggett, chief executive of Seraphim Space Manager, said: “HawkEye 360 exemplifies SSIT’s commitment to mission critical, revenue-generating SpaceTech enterprises positioned at the crossroads of space, defence, data infrastructure and national security.
“The proposed IPO will mark a significant milestone for both HawkEye 360 and SSIT’s broader portfolio, underscoring the increasing maturity of the commercial SpaceTech sector and the pathway to public markets for scalable, profitable space-enabled businesses.”
Established in 2015, the Virginia-based company has a growing number of governments and agencies contracting it on the battle field where its satellites can disrupt enemy communications and provide early warning of missile attack or troop movements.
SSIT formally launched its £350m fund raise yesterday. This includes a retail investor offer alongside a placing to institutions. The offer closes on 6 May.
Yesterday’s announcement knocked 8% off the share price but today’s news has seen SSIT rebound 9.3%, or 18.6p, to 218.6p, up 333% from 53p a year ago, according to Google Finance.
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James Carthew, head of investment company research at QuotedData, said: “The announcement of the Hawkeye IPO and the boost that this gives to SSIT’s NAV illustrates the potential of the SpaceTech sector. The beauty of using a C share mechanism to raise more money for Seraphim is that existing investors are not diluted by new money coming into the trust. The manager has plenty of opportunities to deploy the money that Seraphim raises and, with an influx of money from the C share, it will not feel pressured to cash in its investment in Hawkeye to fund these.”
