FRANKFURT, Germany, June 22, 2026 (BSS/AFP) - German satellite maker OHB said Monday that it would issue new shares to raise over 500 million euros ($570 million) to finance its growth as European countries ramp up their space investments.

Over 1.7 million shares will be offered at 300 euros a piece in two sales beginning June 25, OHB said.

"This capital increase opens pathways for us to execute on our strategic goals: We want to accelerate industrialisation, invest in launch vehicles, and explore attractive M&A opportunities," the group's chief executive Marco Fuchs said in a statement.

European governments have increased military spending since Russia's 2022 invasion of Ukraine, and Germany's Defence Minister Boris Pistorius has announced a 35 billion euro drive by 2030 to build out space capacity.

OHB is working with Rheinmetall and the defence arm of European aerospace group Airbus to develop a satellite-based internet service similar to Elon Musk's Starlink for the German military.

Ukraine has become reliant on Starlink to keep communications and targeting systems online despite Russian attacks on its land-based infrastructure.

OHB shares have surged 220 percent since the start of the year, fuelled by investor interest in the space defence boom.

The US private equity group KKR, which owns about 29 percent of OHB shares, will sell up to 22.3 percent of its stake in the company as part of the share issue, OHB said.