Exclusive-Axelspace eyes June IPO, sources say, latest Japan space startup to seek a listing

By Kantaro Komiya and Miho Uranaka

TOKYO (Reuters) -Tokyo-based outer shaper Axelspace plans to database its shares arsenic aboriginal arsenic June, 2 sources said, the latest successful a dependable watercourse of home abstraction startups tapping the Japanese superior markets amid mixed capitalist views connected the sector's prospects.

Axelspace's archetypal nationalist offering (IPO) is expected to beryllium approved by the Tokyo Stock Exchange aboriginal this month, the radical who had cognition of the substance said.

If successful, it would beryllium the 5th specified listing of a Japanese spacecraft task implicit the past 2 years.

Japan's backstage abstraction industry, estimated astatine astir 4 trillion yen ($27.8 billion), has traditionally been dominated by dense manufacture conglomerates. Of the much than 100 abstraction startups active, astir are loss-making, and the fistful that are listed person a mixed grounds successful delivering banal marketplace returns to investors.

What is, however, providing a tailwind to the backstage abstraction ventures is the enactment from the Japanese government, which is successful the midst of its biggest postwar defence buildup successful the aftermath of China's increasing technological and subject clout. Axelspace and different prospective IPO candidates successful the assemblage are banking connected that enactment to gully successful investors.

Axelspace's valuation successful the IPO could beryllium comparable to those of radar outer makers Synspective and iQPS, 1 of the sources said. Synspective is presently valued astatine 121 cardinal yen, and iQPS astatine 72.5 cardinal yen.

Axelspace has antecedently considered going nationalist but faced delays attributed to outer malfunctions and applications for authorities subsidies, and whitethorn propulsion it backmost again, the idiosyncratic said, adding SMBC Nikko Securities is the pb manager.

Axelspace did not respond to requests for remark connected its listing plans erstwhile contacted by Reuters.

SMBC Nikko Securities and Tokyo Stock Exchange declined to comment.

Founded by University of Tokyo aerospace researcher Yuya Nakamura successful 2008, Axelspace has launched 5 optical Earth reflection satellites and built immoderate tiny satellites for outer clients including Weathernews. It plans 7 much outer launches adjacent twelvemonth to grow its in-house reflection information business.

The company, successful which trading location Mitsui & Co and airliner ANA person invested, antecedently completed a Series D circular successful 2023. With that, it raised a cumulative 14.3 cardinal yen, according to its website.

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The emergence of abstraction startups successful Japan is "not a fleeting boom" but a effect of decade-long authorities enactment done abstraction instrumentality authorities and funding, said Masayasu Ishida, main enforcement of commercialized abstraction league organiser Spacetide.