An investment trust focusing on commercial space opportunities is set to raise £350 million from retail investors to capitalize on the booming space technology market.
Seraphim Space Launches Major Share Issuance
Seraphim Space, the world's first listed fund specializing in backing space ventures, announced it would launch one of the largest share issuances in British investment history. The move aims to broaden access to space investment opportunities for both retail and institutional investors.
The fundraise follows a strong period for the trust, with its shares surging 341% over the past year as investors sought exposure to the burgeoning commercial space industry. However, the share price fell about 12% on Monday as investors adjusted to the increased supply of shares.
Declining Costs Fuel Space Industry Growth
Over the past decade, the cost of accessing space orbit has fallen by a factor of 100. The development of miniaturized satellites using off-the-shelf components has substantially reduced manufacturing costs. These advances have sparked a wave of emerging space industries, including those monitoring climate change and developing defense and security technologies.
Seraphim, which floated on the stock exchange in 2021, has backed 45 space technology firms since its launch. Nine of these are now unicorns with valuations exceeding $1 billion (£737.8 million). Five others have listed on London's bourse, while one has been sold. The trust does not hold a stake in Elon Musk's SpaceX, the multi-trillion-dollar rocket and satellite giant preparing for a US stock market debut.
Multi-Decade Demand for Space Technology
“Spacetech’s accelerating growth is being driven by global security concerns, desire for climate sustainability, and the search for next-generation infrastructure for telecoms and AI,” the trust stated. “It is expected that Seraphim will benefit from the continued multi-decade growth in demand for space-related technologies.”
The issuance, organized by retail investment specialist Retailbook, will use a new class of shares called C shares. These shares are designed to minimize the impact of the cash-raising round on returns for existing shareholders. The C shares will convert to standard shares at regular intervals.
