Firefly Aerospace shares fell 11% in morning trading, highlighting investor interest in high-growth listings. The Nasdaq debut saw shares open at $70, 34% higher than the IPO price of $45. Post-IPO stocks often see sharp swings due to limited share float and market sentiment shifts.

Despite a drop in premarket trading, Firefly’s stock remains above the IPO price, indicating strong institutional investor support. The company raised $868.3 million in the year’s largest U.S. space listing, marking a comeback from bankruptcy. Private space firms are attracting interest for their role in military and civil programs.

Investor interest in space firms is growing, with NASA’s lunar missions and Pentagon demands driving demand. However, high development costs and long production timelines pose challenges. Firefly’s successful IPO signals a resurgence in the high-risk sector, with startups expected to follow suit.

Read more at Yahoo Finance: Firefly Aerospace sputters a day after stellar Nasdaq debut