April 29 (Reuters) - Defense supplier L3Harris said on Wednesday it has confidentially submitted a draft registration statement for the initial public offering of its missile solutions business.
The company said the number of shares to be offered and the price range for the proposed IPO are yet to be determined.
In January, L3Harris said it plans to sell new equity in its growing rocket motor business, creating a standalone company backed by a $1 billion U.S. government investment in the form of convertible
security.
The securities would automatically convert into common equity when the company goes public later this year, the defense contractor said.
The U.S. government investment is intended to guarantee the Pentagon a steady supply of critically needed rocket motors for a wide range of weapons systems, including the Tomahawks missiles and Patriot interceptors.
L3Harris has said its Missile Solutions unit, which produces missile propulsion systems used in weapons including the Patriot, THAAD, Tomahawk, and the Standard Missile, will be carved out from the parent company, with L3Harris retaining a majority ownership stake and control of the new entity.
Chief Executive Chris Kubasik told reporters in January he expects the new missile business to deliver annual growth in the mid- to high-teens, as the deal with the U.S. government guarantees a steady flow of business for the new unit.
In March, L3Harris appointed Kenneth Sharp as its chief financial officer, succeeding Kenneth Bedingfield, who the company said, will focus on leading the missile solutions business and steering it through the IPO process.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Sumana Nandy and Sherry Jacob-Phillips)
