Trump’s Mars and Missile Plans Aid Appeal of Defense Sector IPOs

The White House’s ambitions to upgrade the US’s missile defense systems and put a person on Mars likely require more government spending, raising revenue potential for contractors seeking initial public offerings.

One potential beneficiary is Karman Holdings Inc., a Huntington Beach, California-based firm that designs and produces integrated systems for space and defense programs. The company and some of its backers expect to raise as much as $421 million in an IPO this week.

At the top of the price range, Karman would have a market value of about $2.64 billion based on the outstanding shares listed in a ...