Will the Sidus Space IPO Price Continue to Soar or Whipsaw?

By

Dec. 14 2021, Published 12:24 p.m. ET

The Cape Canaveral, Fla.-based satellite company Sidus Space is gearing up for its launch into the public market. The company's upcoming IPO has just been priced at the mid-point of its previous estimate. Potential investors wonder whether the stock will soar or whipsaw once it goes public.

Article continues below advertisement

What's the prediction for Sidus Space's stock price, which debuted at $5 per share and quickly escalated?

Sidus Space priced the IPO at $5 per share, which more than tripled.

Carol Craig, the founder and CEO of Sidus Space, has made a name for herself at the helm of a woman-owned and led space company.

Article continues below advertisement

The micro-cap company announced that it was going public with a $5 price point per share, which is currently trading under the ticker symbol "SIDU" on the Nasdaq Exchange.

Sidus is unique in more ways than one. It also offers space-as-a-service, which means that it designs, manufactures, and launches satellites and collects data. Thanks to its manufacturing services, the company has already generated revenue. However, newer offerings like the commercial constellation service haven't raked in funds yet.

Article continues below advertisement

Will Sidus stock keep going up?

Originally priced at $4–$6 per share, Sidus decided to go with the $5 midpoint for 3 million shares. The $15 million IPO launched on Dec. 14 at the specified price. This means that institutional and preferred investors were able to snag shares of Sidus at the low value of $5 a piece.

SIDU stock reached $16.61 minutes before 12:00 p.m. ET on the first trading day on Dec. 14, although early investors can't dump the stock at the higher price yet because they're bound by a lockup period.

Article continues below advertisement

SIDU stock could soar or whipsaw into the red in the hours and days after its IPO.

What can investors expect with post-IPO Sidus stock?

Sidus stock soared 232 percent in the wee hours of trading, but will that momentum last?

Article continues below advertisement

The Nasdaq Exchange halted the stock at a price of $16.61 and a trading volume of 166,750 before 12:00 p.m. ET on Dec. 14 in response to the frenzied trading.

Some investors are already calling the stock a pump and dump due to its intense price increases, especially considering the company's status as a micro-cap stock. It's possible that the stock will whipsaw or drastically decrease in value after experiencing a major rise. Investors who buy in after the halt ends could potentially be limiting their chances of seeing their positions profit, at least in the short term.

Article continues below advertisement

However, the reality depends on where the stock stands once it unfreezes. The stock could drop drastically or it could continue to rise, in which case investors who are late to the party could even see returns.

Micro-cap Sidus Space carries heightened risk due to its status as a fresh IPO. Volatility is likely, even if many investors are in the green. Whatever the case, the interest in SIDU is strong, which shows investors' capacity for more space-industry staples.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.