Astra Space IPO: Rocket Startup Goes Public via SPAC

Astra to Go Public via SPAC Merger

Astra, the rocket launch company that recently achieved spaceflight during a December test launch from Alaska, is set to become a publicly traded entity. This will be accomplished through a merger with Holicity, a special purpose acquisition company (SPAC), on the Nasdaq exchange.

SPAC Trend and Astra's Position

The surge in SPAC activity has now extended into the New Space industry. Virgin Galactic previously utilized this method for public listing, establishing a precedent for space launch companies. However, Astra will be the first to be listed on the Nasdaq.

Financial Details of the Merger

The deal is projected to provide Astra with $500 million in cash. This figure comprises $300 million currently held in trust by Holicity and an additional $200 million investment through a PIPE (private investment in public equity) managed by BlackRock funds.

The pro forma enterprise valuation for Astra is approximately $2.1 billion. This valuation is calculated by subtracting the $500 million in cash from the company’s overall value.

Astra anticipates the merger's completion by the second quarter of the current year. Following this, the company’s stock will trade under the ticker symbol “ASTR.”

Astra’s Manufacturing and Launch Approach

Astra designs and manufactures its own rockets, specifically for carrying small orbital payloads. Production takes place at a facility located in Alameda, California.

Launch vehicles are transported to Kodiak, Alaska, for flight operations. A minimal ground crew is required at the spaceport for mounting and launching, while the majority of the team manages the flight remotely from a mission control center in California.

Focus on High-Volume, Low-Cost Launches

The company’s business model centers on the efficient production of relatively inexpensive rockets. This allows for responsive deployment and launch capabilities from various locations, based on specific requirements.

Recent Success and Future Goals

The successful December test validated years of development and refinement of Astra’s launch system. The company initially participated in a DARPA-funded competition focused on rapid response launch capabilities, though the contest concluded without a winner.

While the December test didn’t quite achieve full orbital velocity for payload delivery, Astra asserts that the remaining adjustments are easily achievable through software updates. The company plans to begin delivering commercial satellites starting this summer.

Long-Term Vision

Astra’s ultimate goal is to achieve a daily launch cadence by 2025. In a blog post accompanying the SPAC announcement, founder and CEO Chris Kemp expressed the company’s intention to “build a platform of space services,” indicating broader ambitions beyond rocket development.