Chinese satellite maker GalaxySpace starts IPO process

Chinese satellite maker GalaxySpace has begun the so-called tutoring process for a potential ‌initial public offering, state media reported on Tuesday, the latest ‌private space firm to take steps towards an IPO as China encourages them to ​tap the country’s capital markets.

Chinese reusable rocket startup LandSpace plans to raise $1 billion in a potential IPO, according to a document released in late December by the Shanghai Stock Exchange, days after it eased IPO ‌rules for such companies, ⁠part of Beijing’s efforts to close a gap in its space capabilities with the U.S.

The tutoring process, ⁠unique to China, involves investment bankers coaching company executives on IPO-related issues, usually the first step for a company preparing to go public.

Beijing-based GalaxySpace ​is an ​important domestic manufacturer of low-Earth ​orbit (LEO) satellites, a technology that ‌has in recent years become a strategic priority for China, as it tries to crack a near-monopoly held by U.S.-based Starlink, controlled by Elon Musk’s SpaceX.

The cheaper and more reliable communications provided by LEO satellite providers such as Starlink have played an important role in ‌military conflicts around the world, most ​prominently in Russia’s war on Ukraine. China’s ​military has repeatedly warned that ​Starlink’s dominance in Earth’s lower reaches posed a ‌security threat.

GalaxySpace has in the past ​year collaborated with ​Chinese rocket developers to put dozens of its LEO satellites into orbit as China begins building huge internet constellations in ​space to rival Starlink.

It ‌has also recently pursued overseas partnerships in countries like Thailand, ​reflecting a broader trend among Chinese satellite makers.