American defense giant L3Harris (LHX.US) missile business Axyv is sprinting towards an IPO, receiving a $1 billion investment from the Pentagon, with plans to raise $2 billion.

According to informed sources, one of the largest defense contractors in the United States, L3Harris (LHX.US), has selected an investment bank to provide lead services for the IPO of its missile business division, Axyv. The sources stated that J.P. Morgan and Morgan Stanley are leading the offering. One person revealed that the IPO could raise up to $2 billion. The sources mentioned that the company secretly filed for the IPO in April and could possibly go public as soon as next month. Additionally, more banks may join the underwriting team in the future. The sources also mentioned that the review process is still ongoing, and specific details of the IPO may change. According to a statement from L3Harris, the U.S. Department of Defense invested $1 billion in the missile solution business in April in the form of convertible preferred stock, which will convert to common stock at the time of the IPO. Prior to this, Elon Musk's SpaceX had a successful initial public offering (IPO), with its market value surpassing Amazon.com, Inc. within three days of going public. Fueled by this momentum, L3Harris has joined the growing list of companies going public this year. SpaceX's strong performance (with its stock price rising about 50% from the IPO price) has further stimulated market enthusiasm for aerospace, defense concept stocks, and companies that promote artificial intelligence (AI). The statement also indicates that after the IPO is completed, L3Harris will still remain the controlling shareholder of Axyv, and the funds raised from the offering will be used to finance the expansion and modernization of the solid rocket engine production facilities.