By Eduardo Baptista
BEIJING, April 1 (Reuters) – China’s CAS Space Technology is seeking to raise around 4.18 billion yuan ($607 million) in a planned listing on Shanghai’s tech-focussed STAR Market, according to a filing on Tuesday, as Chinese space firms take advantage of government support to pursue initial public offerings.
The Shanghai bourse eased IPO rules for Chinese companies developing reusable rockets in late December, part of Beijing’s efforts to close a gap in space capabilities with the United States.
Reusable rockets are crucial in reducing the cost of launches and enabling countries and companies to put into orbit satellites for a wide range of uses, from military surveillance to providing reliable Internet and broadband communication.
Guangzhou-based CAS Space, a commercial spin-off of the Chinese Academy of Sciences, China’s biggest state research institute, follows firms including LandSpace and GalaxySpace in revealing plans to tap into the country’s capital markets.
CAS Space plans to use most of its IPO proceeds to develop reusable rockets, a technology that only Elon Musk’s SpaceX has reliably mastered so far.
SPACE IPO PUSH
The latest IPO plan highlights China’s push to channel capital into private-sector launch providers to support large-scale satellite constellation deployment and reduce its dependence on state-owned players.
Privately-owned LandSpace, China’s leading reusable rocket firm, is looking to raise just over $1 billion on the STAR Market.
CAS Space remains unprofitable due to heavy research spending, accumulating losses of about 2.5 billion yuan.
Over the past three years, R&D spending exceeded revenue, underscoring its capital-intensive model.
CAS Space said its new-generation Kinetica-2 rocket completed its maiden flight on Monday, delivering multiple satellites and a prototype spacecraft into orbit.
The Kinetica-2 is designed for high-frequency, low-cost launches using an architecture that allows for potential reuse, positioning it to support China’s expanding low-Earth orbit satellite infrastructure.
(Reporting by Eduardo Baptista; Editing by Kate Mayberry)
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