MDA wraps IPO offer

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Satellite technology and services company MDA has reported an over-allotment of shares following on from its IPO. MDA Corp, the satellite builder formerly known as MacDonald, Dettwiler & Assoc, are perhaps better known as the builders of the Space Shuttle’s sophisticated ‘Canadarm’ robotic crane which is still used on the International Space Station

MDA says the offer’s underwriters can buy 4.28 million shares at C$14 (€9.36) per share, which was taken up in full and thus generated an extra C$60 million in gross proceeds.

The underwriters included BMO Capital Markets, Morgan Stanley Canada Limited and Scotiabank, as joint bookrunners, with Barclays Capital Canada, RBC Dominion Securities, Canaccord Genuity, CIBC World Markets, National Bank Financial and Stifel Nicolaus Canada.

Overall the IPO sold 28.57 million shares and raised about C$400 million.

The Common Shares began trading on the Toronto Stock Exchange on April 7th under the symbol ‘MDA’.

MDA says that it is targeting some C$2 billion in revenues from its new Synthetic Aparture Radar (SARnext) over the next 15 years and with anticipated growth rising from last year’s a US$411 million to US$800-$900 million in 2022 and US$1.5 billion by 2025.

It currently has contracts in place to supply antennas for Telesat’s Lightspeed constellation which could grow significantly in value from today’s $800 million or so for 300 satellites to a much larger value if Telesat decides to expand the orbiting fleet to 1600 satellites.


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