China's CAS Space targets $607 million IPO for reusable rocket R&D

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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