At the close of its very first day as the public company, August 17, shares of the Spire Global, a tiny satellite constellation operator, fell 5.2 percent to $9.41. After shareholders of SPAC (special purpose acquisition company), NavSight authorized their merger; the operator is currently trading on New York Stock Exchange (NYSE) under the “SPIR” symbol.
Spire raised $265 million in money from the transaction, falling short of its $475 million targets when it revealed the merger intentions in March.
Spire is valued at $1.6 billion following its merger with NavSight, a special-purpose acquisition firm. Spire will get approximately $475 million in cash as part of the purchase, which will be used to speed up data collection and analysis activities in aviation, weather, maritime, climate, and other areas.
A group of investors led by BlackRock Advisors, Hedosophia, Tiger Global Management, Bloom Tree Partners, and Jaws Estates Capital put in $245 million. In September, NavSight went public on New York Stock Exchange with a $200 million IPO under the ticker symbol NSH.
After regulatory and shareholder clearances, Spire expects to list on the very same exchange under the ticker SPIR this summer, which will be much faster than the typical approach to going public, which can take anything between six to 18 months.
Spire Chief Executive Officer Peter Platzer said, “We are thrilled about this next milestone of our journey.” “Because now Spire is a publicly-traded company, we have the resources and platform to deliver even more zealously on our objective of using space to assist our clients make the whole world a more equal and sustainable place.”
Spire offers data-gathering and analysis solutions across aviation, weather, climate, maritime, and other markets through its over 110 Lemur satellites in the low Earth orbit. The revenues from the IPO will be used to enhance the company’s international market share by investing in sales, marketing, and product development. It made $36 million in sales last year and expects to make $70 million in the year 2021, with sales of $1.2 billion by the year 2025.
Spire’s IPO comes just days after Momentus, an in-space transportation firm, merged with a SPAC and began trading on Nasdaq under the ticker code “MNTS” on Aug. 13. After its debut day as a public traded company, Momentus stock fell 2.6 percent to $10.68. On August 17, the stock closed at $9.67.
This year, Astra, a launch vehicle developer, and AST SpaceMobile, a company constructing a satellite broadband constellation that is compatible with a cellphone, both merged with SPACs and went public. In the following months, several more space corporations aspire to follow in their footsteps. Vector Acquisition Corp. shareholders will vote on the SPAC’s merger with the Rocket Lab, the deployment services provider, on August 20.