May 7 (Reuters) - HawkEye 360 shares jumped 30% in their New York Stock Exchange debut on Thursday, securing a $3.15 billion valuation and signaling strong investor demand for defense-tech offerings.
The stock of the space analytics firm opened at $33.80, above the offer price of $26.
The Herndon, Virginia-based firm raised $416 million in its U.S. IPO on Wednesday, selling 16 million shares at the top end of its marketed range of $24 to $26 a share.
HawkEye's top-of-range pricing reflects strong market appetite for defense-related IPOs and we expect defense spending to grow in the years ahead, Edward Best, partner at Willkie Farr & Gallagher said.
"Some of the market's interest is fueled by the 2026 U.S. National Defense Authorization Act, authorizing over $900 billion in spending, but increased defense spending isn't limited to the U.S. This is all good news ahead of a SpaceX IPO,"Best added.
The company's market debut arrives at a pivotal moment for space-technology listings, with a potential SpaceX public filing seen as a bellwether for sector confidence in equity markets.
Following a strong April for new listings, IPO activity is set to accelerate in the coming months. HawkEye made its market debut alongside organic juice maker Suja Life, while autoimmune disease-focused biotech Odyssey Therapeutics is slated to list on Friday.
Founded in 2015, HawkEye provides signals-intelligence data to defense, intelligence and national security agencies, using satellites to detect, locate and analyze radio frequency emissions worldwide.
HawkEye operates more than 30 satellites, with the U.S. government and allied nations accounting for the bulk of its revenue. In December, the company acquired ISA, expanding its capabilities in signal processing and classified intelligence systems and strengthening ties with U.S. agencies.
Entities affiliated with Insight Partners will own about 15% of HawkEye's outstanding shares following the offering, making the venture capital firm one of the company's largest shareholders.
(Reporting by Prakhar Srivastava & Atharva Singh in Bengaluru; Editing by Tasim Zahid)
