Many startups talk of going to the moon through an IPO, but few leave the Earth's atmosphere like Intuitive Machines. The space exploration firm is gearing up to go public, giving investors a chance to increase their exposure to the innovative sector.
Intuitive Machines, which supplies products and services for space exploration, filed a Form S-4 registration statement with the U.S. Securities and Exchange Commission (the “SEC”) last week.
This follows an announcement from the company in September of a planned merger with Inflection Point Acquisition Corp. (NASDAQ: IPAX), a publicly traded special purpose acquisition company (SPAC), for the deal.
The date of the IPO remains undecided, yet the Form S-4 states the first public sale will occur “as soon as practicable after (i) this registration statement is declared effective” and once all related transactions have been carried out.
The board of directors at Inflection Point has voted unanimously in favor of the deal. It must now be approved by Inflection Point's shareholders, declared effective by the SEC, and meet other regulatory conditions before advancing to the next stage.
The IPO could see Intuitive Machines cruising into unicorn altitude. It has a current valuation of $1.15 billion in equity terms and $815 million in expected enterprise value.
Intuitive Machines offers solutions across four main areas – Lunar Access Services, Orbital Services, Lunar Data Services, and Space Products and Infrastructure. Lunar Access Services and Space Products and Infrastructure are expected to generate over $200 million each by 2024, while earnings from Orbital Services and Lunar Data Services are expected to exceed $100 million by then.
All combined, Intuitive Machines anticipates total revenue of $759 million by 2024.
Intuitive Machines has won three contracts with NASA, burnishing its credentials as a reliable industry partner and close connections with the U.S. government.
There is a national security angle to the IPO too. Intuitive Machines stated providing backup services to Space Force will be a priority as China attempts to develop its own lunar satellite system.
New space tech stocks have been lackluster in recent weeks, underperforming market indices in this bear market. The Promus Ventures New Space Index, which tracks market players like Joby and Virgin Galactic, was down 20% over the past month, substantially lower than both the NASDAQ and S&P 500.
Investors will watch closely to see if Intuitive Machines can buck the trend with a sky-high valuation.
This post was produced and syndicated by Wealth of Geeks.