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Summary
- Telesat, one of the largest international satellite operators, is expected to go public this year.
- Rumor has it that owner Northern Private Capital is planning to take MDA public to generate proceeds for new projects and to pay its down debt.
- Elon Musk had discussed the possibility of a SpaceX listing in a series of tweets last year
Earthly stocks are great, but are you an investor who is looking among the stars for an investment opportunity? Bring your eyes back down to the ground and take a peek at these three space tech companies that have recently created a buzz around their initial public offering (IPO).
Will Telesat, MDA Inc and SpaceX stocks be available for future investments? Let’s find out.
1. Telesat
Telesat, one of the largest international satellite operators, is expected to go public this year. Back in November 2020, Telesat had announced its plans to merge with co-owner Loral Space & Communications (NASDAQ:LORL) in order to become a publicly traded company.
The deal is expected to see the formation of one merged public company, Telesat Corporation, under which Telesat Canada and Loral Space would function as subsidiaries.
If and when the deal closes, Telesat stocks are expected to hit the Nasdaq exchange sometime in 2021. It also plans to eventually go for a Canadian stock market listing.
The Canadian satellite company announced in February that the Quebec government is providing a C$ 400 million investment for its Lightspeed satellite program.
©Kalkine Group 2020
2. MDA Inc
Another Canadian space tech enterprise that is creating a buzz with its IPO announcement is MDA Inc.
MDA announced it IPO plans on Monday, March 22, adding that Bank of Montreal, Bank of Nova Scotia and Morgan Stanley will be leading a host of banks to look into its IPO procedures.
Originally named ‘MacDonald, Dettwiler and Associates’, MDA is most famously known for its remote-controlled mechanical arm series, Canadarm. In 2017, the company combined with US space imagery firm DigitalGlobe to form Maxar Technologies. About three years later, Canadian investment firm Northern Private Capital bought MDA’s assets for C$1 billion.
3. SpaceX
Engineer-turned-business tycoon Elon Musk has been to the moon and back with his public electric vehicle company Tesla Inc (NASDAQ:TSLA), which broke records to enter the S&P 500 last year and made him the richest man alive in January 2021. Now, investors cannot help but wonder when his other company, SpaceX, would be going public too.
©Kalkine Group 2020
It is not like the thought hasn’t crossed Mr Musk’s mind. The entrepreneur had discussed the possibility of a SpaceX listing in a series of tweets last year, saying that an IPO of its subsidiary Starlink could happen in the distant future.
Mr Musk, however, stressed that a public listing may only happen once the company’s cash flow can be predicted “reasonably well".
Satellite internet constellation Starlink made headlines in October last year after SpaceX conducted a beta test in rural areas of Montana, US, to check its connectivity. The company plans to expand Starlink’s reach globally by the end of 2021.
Keeping in mind that it is still in the early stages of dolling out its services, an IPO for Starlink may likely not happen anytime soon. But if and when it does, Mr Musk can be expected to make a day of it!
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
