Home / Business and Economy / German Space Firm OHB Seeks €500M Amid Space Boom
German Space Firm OHB Seeks €500M Amid Space Boom
24 Jun
Summary
- OHB plans a €500 million rights issue to fund growth.
- Major shareholders will waive subscription rights for the offering.
- Proceeds target M&A, launch vehicles, and production expansion.
German satellite manufacturer OHB has announced plans for a significant €500 million rights issue. This move positions OHB as the first space company to tap public markets following the substantial initial public offering by SpaceX, which achieved a $2 trillion valuation. The offering is intended to bolster the company's financial capacity for strategic growth initiatives.
The Fuchs family, holding a majority stake of 65.4%, and KKR-owned Orchid Lux Holdco, with a 28.6% share, have declared they will waive their subscription rights. This decision highlights their commitment to OHB's future. KKR also intends to sell some shares in a secondary placement but will maintain a substantial portion of its investment.
Proceeds from the rights issue are earmarked for crucial areas including mergers and acquisitions, investments in launch vehicle development, and enhancing the industrialization of its production facilities. The company's stock, which has seen a threefold increase this year, experienced a slight dip following the announcement.
