When I first highlighted penny stock Seraphim Space Investment Trust (LSE:SSIT) in July 2023, it was just 29p. Then in March this year, I took a second look at 61p.
Now, as I write, it’s up at 85p, demonstrating real momentum.
But is it still worthy of attention at this higher price? Let’s take a closer look at this under-the-radar trust.
Unique trust
For those unfamiliar, this is a niche investment trust with stakes in space-related start-ups. These span Earth observation (satellites that take images of the planet), space data and analytics, satellite communications, launch and orbital logistics, and defence applications.
The global space industry has been in the news recently, with reports that rocket and satellite juggernaut SpaceX is planning a big IPO next year. Apparently the firm could command a $1trn+ valuation, showing that massive businesses can emerge from this burgeoning industry.
Indeed, a handful of firms have gone public from Seraphim’s portfolio. These include AST SpaceMobile, which is building a space-based cellular broadband network for smartphones, and Voyager Technologies, which raised $382.8m in June 2025.
AST SpaceMobile stock is up 279% year to date. In the first quarter of 2025, the trust sold 95% of its holding in AST for net proceeds of about $10.5m (£7.9m), at 187% of the original cost.
In June, the trust held 25 investments valued at £259.8m, a healthy uptick from £201.5m a year earlier. The top holding is ICEYE, which has doubled in value over the last year on the back of a string of major commercial successes.
ICEYE builds radar imaging satellites that can take pictures through clouds, smoke, darkness and storm. It has signed multiple contracts with nation states, including a €200m deal with the Polish Ministry of Defence. ICEYE has also launched a joint venture with German defence giant Rheinmetall.
Another holding making great progress is Skylo, which has launched Europe’s first satellite SMS service with Orange.
Defence exposure
Now, one risk here is that the portfolio is heavily concentrated, with ICEYE representing 37.4% in total. If its valuation took a tumble, then it would have an outsized negative impact on the trust’s net asset value (NAV).
Conversely, if ICEYE went public, it could net Seraphim quite a windfall. The Finnish company has strong commercial growth, particularly in the defence sector, so I wouldn’t rule out an IPO in 2026 (especially if SpaceX lists).
From what I can gather, around three-quarters of the portfolio has defence applications. And with military spending set to skyrocket across Europe, many of these holdings could see tremendous revenue growth in future.
As ‘Pax Americana’ dwindles, we are witnessing potentially the most significant geopolitical shift since World War II…Record defence budgets are driving huge demand for cutting-edge SpaceTech capabilities. [The] portfolio has significantly benefited from this evolving landscape. Will Whitehorn, Chair of Seraphim Space Investment Trust.
Blast off?
Even after jumping 55% year to date, the trust is trading at a whopping 31% discount to NAV. So investors can grab a slice of the portfolio for less than its perceived underlying value.
For readers wanting to invest in space and defence, I reckon the stock is well worth considering at 85p. As its portfolio matures over the next few years, Seraphim could be set for blast-off.
