Ohb is targeting a capital increase of over half a billion euros to accelerate its expansion in the European space sector.
Yesterday the German group, among the main European satellite manufacturers, announced a financial operation combining a capital increase of over 500 million euros and a partial sale of shares by its second largest shareholder, the American fund Kkr, aimed at supporting new industrial investments in the space sector, with particular attention to the launcher market.
At the same time, the US fund Kkr will reduce its stake in the company, while the Fuchs family will retain control of the group.
The combined offer would triple Ohb’s free float, implying a market capitalization of 6.3 billion euros and positioning the company to capitalize on the increased investor interest in the sector, Reuters reports. After all, “after SpaceX’s IPO, everyone is aiming for higher valuations,” Ohb’s CEO Marco Fuchs told Reuters earlier this month.
All the details.
GOAL: RAISE OVER HALF A BILLION EUROS
Ohb has announced its intention to issue up to 1.7 million new shares at a price of 300 euros each. The operation will allow the Bremen-based company to raise up to 510.7 million euros.
At the same time, Orchid Lux HoldCo, controlled by Kkr, will sell up to 1.23 million existing shares, according to the bookrunner of the operation.
KKR REDUCES ITS STAKE
Furthermore, the US investment fund Kkr will reduce its stake from 28.6% to about 20%, cashing in up to 368 million euros, an amount higher than what was paid for the entire stake in 2023.
The operation, which includes a greenshoe option, would increase OHB’s free float from 5.7% to 19.2%, according to the bookrunner.
The Fuchs family, the company’s main shareholder, has chosen not to exercise the subscription right but will retain all its shares, thus maintaining a 60% stake in the company.
INVESTMENTS IN INDUSTRIAL GROWTH
In a statement, Ohb explained that the funds will support “strong growth by continuing the industrialization path through significant investments” in production capacity.
The goal is clear, according to La Tribune: “to finance a new phase of industrial investments in space, particularly in launch vehicles, a segment that has become strategic with the strengthening of Europe’s defense capabilities and technological autonomy.”
NOT ONLY SATELLITES, THE PROJECT FOR SPACE ACCESS
Since 2018 the group has been engaged in developing its own launcher for orbiting small satellites through its subsidiary Rocket Factory Augsburg (Rfa), of which it is the majority shareholder. Rfa competes with other European operators in the sector, including the other German aerospace company Isar Aerospace, as well as several French and Spanish companies, all striving to carve out a position in a rapidly growing market.
According to the company’s indications, the rocket’s first flight could take place as early as August from Scotland, after several delays, representing a significant milestone for Ohb’s expansion in the launch services sector.
STOCK MARKET PERFORMANCE
Finally, the operation remains subject to approval by the German financial supervisory authority BaFin.
Besides financing, the operation also aims to increase the stock’s liquidity, the French publication explains. “The free float could therefore rise to 19.2%, compared to the current 5.7%. This is a significant change for a company that has long suffered from low stock market presence, despite its central position in the European space industry.”
The announcement comes after a strong appreciation of Ohb’s stock on the market. In the last six months, shares have risen by more than 220%, reaching a historic high above 670 euros in May before correcting. In yesterday’s session, the stock closed on the Frankfurt Stock Exchange down 2.6%, at 395 euros.
