Defense and Space Systems manufacturer Karman Holding (KRMN.US) priced its IPO at $18-$20/share, aiming to raise $400 million.

Karman Holdings, a company that manufactures mission-critical systems for the U.S. defense and space programs, announced IPO terms on Wednesday. The company plans to price its 21.1 million shares (60% in the secondary market) in the range of $18 to $20 to raise $400 million.

Based on the midpoint of the proposed range, Karman Holdings' market capitalization will be $2.5 billion.

The company currently operates under the name Karman Space and Defense (filed its IPO under the name TCFIII Spaceco Holdings) and specializes in the early design, testing, manufacturing, and sales of mission-critical systems for existing and emerging missile and defense and space programs.

Its integrated payload protection, propulsion, and interstage system solutions are deployed across various programs supporting critical Department of Defense and space programs. Karman's highly engineered solutions are divided into three main series: payload protection and deployment systems, aerodynamic interstage systems, and propulsion systems. These solutions are deployed in three core end markets: hypersonic and strategic missile defense, missile and integrated defense systems, and space and launch.

The company was founded in 2020 and had $331 million in revenue over the 12 months ended September 30, 2024. The company plans to list on the New York Stock Exchange under the ticker symbol KRMN.

Karman Holdings filed confidentially on October 22, 2024. Citigroup, Evercore ISI, RBC Capital Markets, and William Blair are joint bookrunners for the transaction.