OHB Announces €500 Million Capital Injection, KKR Plans to Reduce Stake
OHB's Rights Issue and Market Impact
By Gianluca Lo Nostro
June 15 (Reuters) - German satellite maker OHB announced on Monday plans for a €500 million ($581 million) rights issue, the first space company to tap public markets after SpaceX's record $2 trillion listing lifted investor appetite for the sector.
Shareholder Participation and Rights Issue Details
The Fuchs family, OHB's majority shareholder with a 65.4% stake, and KKR-owned Orchid Lux Holdco will waive their subscription rights for the offering, OHB said, though details on pricing and volume remain undisclosed.
KKR's Stake Reduction Strategy
KKR, which holds a 28.6% stake in OHB, also plans to sell shares in a secondary placement but will retain most of its holding, according to a bookrunner for the deal. The Fuchs family will not sell its shares.
Market Context: SpaceX IPO and Sector Trends
Elon Musk's SpaceX surged past $2 trillion in its landmark initial public offering on Friday, sharpening investor focus on space stocks. Analysts believe the IPO has intensified interest in the sector, with expectations of higher valuations.
Implications for OHB's Capital Raise
Based on OHB's closing price of €410 on Friday, the planned capital raise would equate to roughly 1.2 million new shares, representing about 6% of current share capital, according to Reuters calculations. If offered at a lower price, the free float, currently at 5.7%, could increase by between 7% and 8%.
Use of Proceeds
OHB said proceeds from the rights issue will go toward mergers and acquisitions, investments in launch vehicles, and ramping up industrialisation of production facilities.
Stock Performance and Additional Information
Shares of the Bremen-based company, which have surged more than threefold this year, fell 10% by 0851 GMT.
($1 = 0.8609 euros)
(Reporting by Maria Rugamer, Gianluca Lo Nostro;Editing by Linda Pasquini and Matt Scuffham)
