By Dominic Chopping


OHB shares slumped Monday after the German satellite maker said it plans to raise around 500 million euros ($578.4 million) in fresh capital through a rights issue.

Shares were 9.6% lower in early European trade but have still more than tripled since the start of the year.

The company said funds from the share offer would be used for the development of its production facilities, strategic acquisition opportunities and investments in launch vehicles.

The news comes days after public-market investors poured $75 billion into Elon Musk's SpaceX in a record-setting initial public offering.

OHB said its major shareholders, the Fuchs family and KKR-owned Orchid Lux HoldCo, will waive their subscription rights, which will free up around 94% of the new shares for a private placement and increase the number of shares available for public trading.

The Fuchs family won't sell any of its shares and will remain majority shareholder, while KKR's Orchid Lux will sell some of its stake in the offer while retaining the majority of its current shareholding.

Details on the number of shares and pricing of the rights issue weren't disclosed.

"Europe is investing heavily in independent space capabilities," said Marco R. Fuchs, chief executive of OHB.

"We have a record order backlog, are growing profitably, and are expanding our capacity across Europe. The planned transaction will allow us to accelerate our growth alongside existing and new investors who want to be part of Europe's strategic independence in space."


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

06-15-26 0604ET