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(Bloomberg) -- Karman Holdings Inc., a maker of integrated systems for space and defense programs, and shareholders including Trive Capital raised $506 million in an initial public offering, pricing its shares above a marketed range.
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The Huntington Beach, California-based company, which has been doing business as Karman Space and Defense, and the selling shareholders sold 23 million shares for $22 each on Thursday after marketing them for $18 to $20 apiece, according to a statement.
At the IPO price, Karman has a market value of close to $3 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.
The planned listing would add to growing momentum in the US IPO market. First-time share sales have raised $6.5 billion so far this year with January having its busiest start for such sales since 2022, data compiled by Bloomberg show.
Karman had net income of $11 million on revenue of $254 million for the nine months ended Sept. 30, compared with a net loss of $342,182 on revenue of $203.7 million a year earlier, according to the filing.
The supplier to firms including Northrop Grumman Corp. and Lockheed Martin Corp. was exploring options for Karman including a sale or IPO, Bloomberg News reported in December.
Karman specializes in the design, testing, manufacturing, and sale of systems for missile and defense and space programs, the filing shows. The company has about 1,100 employees across locations in California, Oregon, Washington state and Alabama, according to the filing.
After the IPO, affiliates of Trive will continue to hold the majority of shareholder voting power. Based in Dallas, the private equity firm has more than $7 billion of regulatory assets under management, its website shows.
The offering is being led by Citigroup Inc. and Evercore Inc., the filing shows. The company’s shares are set to trade Thursday on the New York Stock Exchange under the symbol KRMN.
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