According to Shuji Ogawa, CEO of suborbital aircraft company PD AeroSpace. Japanese government spending on space has become a catalyst for growth in domestic startups, fueling investor interest in the emerging sector,
PD AeroSpace IPO Consideration
In an interview on Tuesday, Ogawa revealed that the Nagoya-based startup, planning to commence commercial spaceflight services by 2030, is contemplating an initial public offering (IPO) by 2027 or potentially earlier, seeking around 17 billion yen ($117 million) in funding.
PD AeroSpace follows in the footsteps of successful Tokyo market debuts by radar satellite firm iQPS (5595.T) and lunar transport company Space, both of which secured substantial government subsidies this year.
Ogawa, a former aircraft engineer who founded PD AeroSpace in 2007, noted a positive shift in the landscape for Japanese space ventures, with increased financial support from risk capital and state budgets.
Despite his company’s recent rejection of a rocket development grant, Ogawa highlighted the favorable environment created by Japan’s significant postwar defense buildup in response to China’s technological and military advancements.
PD AeroSpace Technological Focus
PD AeroSpace has developed a versatile engine capable of transitioning between jet and rocket combustion modes midair, enabling the creation of reusable spaceplanes that can take off and land horizontally at conventional airports.
While considering an IPO, Ogawa shared that the company’s shareholders are divided on whether to engage more in state-funded defense projects. He emphasized PD AeroSpace’s current focus on developing technologies primarily for peaceful purposes, with 90% of employees expressing a preference for non-defense space projects.
Despite encountering challenges, such as a drone aircraft crash during a test in June due to communication issues, PD AeroSpace has secured 1.2 billion yen in funding from entities like airline ANA Holdings and travel agent H.I.S. Co, along with support from over 20 businesses and venture capital firms.
To address upcoming hurdles, the company is aiming to raise 3 billion yen in its next funding round, primarily from corporate partners in the logistics and insurance sectors. These funds will be used to launch an unmanned spaceplane in 2025, reaching suborbital levels 80 kilometers (50 miles) above the Earth’s surface.
Ogawa outlined the ideal timeline for PD AeroSpace’s IPO around 2027, coinciding with the planned prototype human-aboard flight. Although the initial plan was to list shares post the commencement of commercial services, the rising demand for suborbital flights might prompt an earlier IPO, potentially as early as 2025, according to Ogawa.
Read More (Innovation)
