Today, shares of Sidus Space (NASDAQ:SIDU) blasted off into the stratosphere on its market debut. The satellite services and design engineering company priced its initial public offering (IPO) at $5 on the Nasdaq. However, SIDU stock soared as high as 440% above its IPO price during market hours before being halted. Since then, shares closed the day at $12.10, representing an increase of more than 140%.
Sidus Space is a “space-as-a-services” company. Indeed, the company operates as a contractor for public and private sector satellite and exploration services. In the past, Sidus Space has done business with popular space names like NASA, L3 Harris (NYSE:LHX) and the International Space Station (ISS).
The satellite maker’s quick price acceleration has left many investors wanting to know more about the company. Therefore, let’s take a deeper look at the Nasdaq’s newest participant.
11 Things to Know as the SIDU Stock IPO Blasts Off
- Sidus Space’s IPO was priced at the midpoint of $5, implying total gross proceeds of $15 million based on 3 million shares offered. Proceeds from the offering will go toward sales, marketing and general development efforts. Furthermore, the $5 IPO price implies an $81 million market capitalization, although the price has since soared higher.
- Carol Craig serves as the CEO. Additionally, she owns a whopping 96.9% of Sidus Space’s total equity. This figure will become 94.2% after the IPO offering. No other executives of Sidus Space own equity.
- The global space industry currently has an estimated total addressable market (TAM) of $350 billion. However, Morgan Stanley (NYSE:MS) believes this number could hit $1 trillion by 2040.
- According to the S1 prospectus, the company reported revenue of $885,000 and a net loss of $1.32 million in the first three quarters of 2021.
- Additionally, financial metrics for the first three quarters of 2021 were negatively impacted by a 122% increase in pre-IPO expenses. These expenses included increased hiring and advisory costs.
- The company has high hopes for its hybrid 3D manufactured LizzieSat low earth orbit (LEO) micro-satellite. The satellite focuses on “rapid, cost-effective development” and should launch from the ISS in late 2022.
- The number of small satellites launched into space has grown from 39 in 2011 to 1,202 in 2020. Moreover, from 2019 to 2020, the number of small satellites launched grew by over 300%.
- Sidus Space’s strategy is to “build an all-inclusive space-as-a-service platform for the global space economy that expands access to commercial, government and academic innovators.”
- Competitive strengths for Sidus Space include its experienced management team, patented technology, a growing space market and multiple products and services.
- Risks to the satellite-maker include the propensity to market and sell LEO satellites, collisions with space debris, profitability and changes in consumer preference.
- Finally, Boustead Securities served as the lead and sole underwriter for the IPO.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.