Karman Completes Expanded IPO with Full Over-Allotment Option Exercise

Karman Completes Expanded IPO with Full Over-Allotment Option Exercise
by Clarence Oxford
Los Angeles CA (SPX) Feb 16, 2025

Karman Holdings Inc., a leading provider of mission-critical systems for defense and space applications, has successfully closed its initial public offering (IPO), raising significant capital through an upsized offering that included a full exercise of the underwriters' over-allotment option.

The offering comprised 26,450,000 shares of common stock priced at $22.00 per share. Karman itself issued 8,421,053 of these shares, while existing stockholders ("Selling Stockholders") sold 14,578,947 shares. Additionally, certain Selling Stockholders provided 3,450,000 shares as part of the over-allotment option exercised in full by underwriters. Karman will not receive any proceeds from the sale of shares by the Selling Stockholders.

Proceeds from the IPO that Karman receives, combined with its current cash reserves, will support general corporate initiatives, including further development efforts, working capital, and operating expenses.

This IPO represents a significant milestone for Karman, marking the culmination of years of growth and strategic positioning within the defense and space industries. The company has steadily expanded its portfolio, focusing on advanced technologies for missile defense, hypersonic vehicles, and next-generation space platforms. Karman's ability to secure major government and commercial contracts has cemented its reputation as a key player in an increasingly competitive sector.

The decision to go public follows a series of successful project completions and technological advancements. Over the past year, Karman has increased its production capabilities, streamlined its supply chain, and invested heavily in research and development to stay ahead of market demands. These efforts have not only improved operational efficiency but also positioned the company for sustained long-term growth.

Looking ahead, Karman aims to leverage the proceeds from its IPO to accelerate innovation, expand production facilities, and explore strategic partnerships that will further enhance its market presence. The company is particularly focused on strengthening its role in the rapidly evolving space defense sector, where new opportunities are emerging due to increased government spending and private sector investment.

Leading financial institutions managed the offering. Citigroup and Evercore ISI acted as book-running managers and representatives of the underwriters. RBC Capital Markets and William Blair also served as joint bookrunners, while Baird took on the role of co-manager.

As Karman embarks on its next phase as a publicly traded entity, industry analysts are closely watching how the company executes its growth strategies and adapts to the dynamic landscape of space and defense technology.