According to sources familiar with the matter, L3Harris Technologies, Inc. (LHX.US), one of America's largest defense contractors, has selected banks to lead the initial public offering for its missile solutions business, Axyv.

Sources indicate that JPMorgan Chase and Morgan Stanley are leading the offering, which could raise up to $2 billion.

The company confidentially filed for the listing in April and could go public as soon as next month, with more banks potentially joining the underwriting syndicate, the sources added.

It was noted that deliberations are ongoing and details of the IPO are subject to change.

According to a statement from L3Harris Technologies, Inc., the U.S. Department of Defense invested $1 billion in the missile solutions unit in April in the form of convertible preferred stock, which will convert to common shares upon the IPO.

This move by L3Harris Technologies, Inc. adds to the growing roster of companies going public this year, following the blockbuster debut of Elon Musk's SpaceX, whose market value surpassed that of Amazon within just three days of trading.

The strong performance of SpaceX, whose shares have risen approximately 50% from their IPO price recently, has further fueled market enthusiasm for aerospace, defense, and companies touting artificial intelligence capabilities.

The statement showed that following the IPO, L3Harris Technologies, Inc. will remain the controlling shareholder of Axyv, and the proceeds from the offering will be used to fund the expansion and modernization of solid rocket motor production facilities.