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Summary
- Putting all rumors to rest, Canadian space tech firm MDA Inc announced that it has filed for an initial public offering (IPO).
- The IPO is likely to be completed this year.
- Reports earlier had claimed that Northern Private Capital is looking to get MDA listed on the Canadian bourse of Toronto Stock Exchange (TSX).
Putting all rumors to rest, Canadian space tech firm MDA Inc announced that it has filed the required preliminary prospectus for an initial public offering (IPO).
Reports earlier had claimed that Northern Private Capital, which purchased MDA’s assets from Maxar Technologies about a year ago, is looking to get MDA listed on the Canadian bourse of Toronto Stock Exchange (TSX).
Let’s dive in to find out more about the MDA IPO:
MDA Inc IPO & Stock Details
MDA Inc said in its latest SEDAR filing that it expects to raise gross proceeds of about C$ 500 million from an offering of about 25 million to 31.25 million shares at a projected price range of C$ 16 to C$ 20 apiece.
The Brampton-based company, however, has pointed that these figures are all estimations at this point.
©Kalkine Group 2020
In case the IPO’s over-allotment option is fully exercised, MDA said that it will be offering an additional 3.75 million to 4.68 million shares at the same price range.
Confirming speculation, MDA said in its official release that Bank of Montreal, Bank of Nova Scotia and Morgan Stanley are acting as joint bookrunners to lead a syndicate of underwriters for its public listing procedures.
MDA IPO Date
The MDA IPO is likely to be completed sometime this year.
MDA Inc Financials
Over 50 years ago, MDA came into being as ‘MacDonald, Dettwiler and Associates’ after its founders. As the space technology sphere evolved over the years, MDA’s presence expanded on a global level. The company made a special mark in the field of space robotics for its remote-controlled mechanical arm series, Canadarm.
In 2017, MDA joined forces with Colorado-based space imagery firm DigitalGlobe and became a combined entity called Maxar Technologies Inc.
About three years later, Toronto-headquartered private equity firm Northern Private Capital bought MDA’s assets for about C$ 1 billion. Now, the company is reportedly looking to turn MDA public to raise capital to fund new projects and lessen its debts.
MDA was awarded Phase A of the Canadarm3 project by the Canadian Space Agency (CSA) in December 2020. In its IPO prospectus, MDA noted that it expects to bag the five-year project’s subsequent phases in 2021, which is likely to generate a projected revenue of C$ 1.4 billion.
