Space Pioneer and Galactic Energy, two prominent players in China's burgeoning commercial space industry, are making strides toward Initial Public Offerings (IPOs) amidst a wave of investment. According to a report by Chinese tech outlet 36Kr, Galactic Energy, officially known as Beijing Galaxy Power Aerospace Technology Co., Ltd., initiated its listing guidance on October 22, signifying the preliminary steps toward an IPO.
This move follows significant financial backing. Since its inception in 2018, the company has accumulated over 5 billion yuan ($700 million), with nearly half of this amount secured in September through a $336 million Series D funding round. Galactic Energy also unveiled a mission patch for the inaugural launch of its Ceres-2 solid rocket on October 22. This launcher is larger than the Ceres-1, with which the company has established itself as a reliable commercial launch provider in China. The company is also gearing up for the first launch of Pallas-1, its first liquid propellant launch vehicle.
Simultaneously, Space Pioneer, also known as Jiangsu Tianbing Aerospace Science & Technology Co., Ltd., has officially submitted its application for listing guidance on October 17, with CITIC Construction Investment Securities Co., Ltd. providing guidance, according to state media Xinhua. This follows $350 million secured in recent funding rounds. Space Pioneer is also nearing the debut of Tianlong-3, a medium-lift, potentially reusable launch vehicle, almost 18 months after a static fire test.
These companies, alongside other commercial entities like Landspace, CAS Space, and iSpace, are striving to demonstrate their ability to reliably reach orbit and secure launch contracts for the Chinese megaconstellations Guowang and Qianfan (Thousand Sails). These constellations plan to deploy over 10,000 satellites each in low Earth orbit, demanding a significant increase in China's launch capabilities. Landspace and CAS Space initiated their listing processes on the Shanghai Stock Exchange’s STAR Market in July and August, respectively.
IPOs provide companies with the opportunity to secure substantial capital for research and development, production expansion, infrastructure development, and more. They also provide early investors with an exit strategy through the sale of shares in the public market. However, these moves may also bring pressure to deliver, especially as these companies prepare to debut their flagship launch vehicles.
“IPOs will offer companies the opportunity to raise substantial funds which can be used for research and development, production scale-up, infrastructure and more, while offering early investors an exit route through the sale of shares in the public market."
These developments are underpinned by the Chinese central government's emphasis on the commercial space sector as a crucial driver of high-tech progress, capable of transforming the nation's space capabilities. This has been accompanied by strong support from provincial and local governments for commercial space companies, with state-led and provincially-tied investment vehicles playing a significant role in recent funding rounds.
Other recent commercial space IPO activity in China includes Jiangsu Yixin Aerospace Technology, or Yixin Aerospace completed A-share IPO counseling in early August. Small satellite manufacturer MinoSpace, founded in 2017, filed for a listing on STAR Market in September.
These IPO preparations indicate that China's expanding commercial space sector is entering a new era of industrialization, financial maturity, and state-supported growth. Globally, there has been a recent increase in space companies going public, including Voyager Technologies' IPO in June and Firefly's filing in July, with Japanese companies also pursuing IPOs.