Shares of Institute for Q-shu Pioneers of Space (iQPS) experienced a remarkable 82% surge in their Tokyo growth-market debut on Wednesday, following a successful initial public offering (IPO) that raised 3.48 billion yen ($23.7 million). The stock, which first traded at 860 yen after a brief delay, closed at the daily limit low of 710 yen due to heavy selling.
Spun off from a Kyushu University lab in 2005, iQPS is the second major space venture to list in Tokyo, following ispace inc’s successful debut in April. The Fukuoka-based startup specializes in small satellites equipped with synthetic aperture radar (SAR), a crucial technology for remote sensing, national security, and disaster management.
iQPS’s small satellites employ synthetic aperture radar (SAR), a technology that captures images of the Earth’s surface with microwaves. Unlike optical sensors, SAR can function during dark nights and through clouds, making it invaluable for various applications. The company, which sold 8.92 million shares in its IPO, aims to establish a “constellation” of 24 satellites around the Earth by 2028 to provide near real-time data.
Japan, aiming to bolster its space industry amid concerns about China’s technological and military advancements, sees iQPS and similar startups as key players. The recent market debuts of iQPS and ispace stand in contrast to challenges faced by the state-funded Japan Aerospace Exploration Agency (JAXA) in rocket development.
iQPS relies on government clients, primarily the defense ministry, for 94% of its 37 billion yen sales in the year to May. The company’s successful IPO will support its plans to launch more satellites, ensuring frequent data collection. Japan’s government has pledged “comprehensive support” for space startups with a focus on SAR technology.
Venture capital fund managed by Sparx Group, satellite giant Sky Perfect JSAT, and state-backed fund INCJ were among iQPS’s major external shareholders upon listing. With its sights set on expanding its satellite constellation and delivering high-resolution imagery, iQPS stands as a notable player in Japan’s burgeoning space industry.