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Summary
- Elon Musk has made it clear that SpaceX’s public listing will be possible only in the distant future. But there is a leading space tech company that went public on April 7.
- The Brampton-based firm announced on Wednesday that it has closed its IPO, which saw the issuance of over 28.5 million shares at a price of C$ 14 apiece to raise gross proceeds of approximately C$ 400 million.
- Its current stock price reportedly gives it a fully-diluted valuation of approximately C$ 1.8 billion.
After the success that Tesla stocks have reeled in over the past year, many investors have been eagerly waiting for Elon Musk’s other venture, SpaceX, to open trade on the public equity markets. Mr Musk, however, has made it clear that SpaceX’s public listing will be possible only in the distant future.
So while SpaceX shares are not hitting the markets anytime soon, there is a leading Canadian space tech company that is creating a lot of buzz with its stock exchange debut.
Let us find out more about the debutant space tech stock.
MDA Inc IPO
After announcing it initial public offering (IPO) plans on Monday, March 22, MDA shares finally hit the Toronto Stock Exchange (TSX) on Wednesday, April 7, under the ticker of ‘MDA’.
©Kalkine Group 2020
The Brampton-based firm announced on Wednesday that it has closed its IPO, which saw the issuance of over 28.5 million shares at a price of C$ 14 apiece to raise gross proceeds of approximately C$ 400 million. It also offered the underwriters a 30-day option to access up to 4.28 million shares for the same IPO price.
MDA’s IPO was overseen by a host of underwriters led by Scotiabank, Bank of Montreal and Morgan Stanley.
Following the IPO, MDA stocks opened trading on the TSX at a slightly increased price C$ 14.14. The stock jumped to a day high of C$ 14.64 on Wednesday before deflating a little to close at C$ 14.55, up nearly four per cent from its IPO price.
MDA’s current stock price reportedly gives it a fully-diluted valuation of approximately C$ 1.8 billion.
A Little Backgrounder on MDA Inc
MDA was originally founded as ‘MacDonald, Dettwiler and Associates’, after its founders in 1969. After a series of changes through the decades, the company became one of the top names in the global space industry. But what put MDA on the map was the development of its remote-controlled robotic arm series, Canadarm.
Source: Pixabay
MDA merged with US space-focused imaging enterprise DigitalGlobe and came to be known as Maxar Technologies in 2017. About three years later, however, the Brampton company came under Canadian control once again as Toronto-based Northern Private Capital purchased all of MDA’s assets from Maxar for C$1 billion.
The company is currently focused of a CSA-awarded project worth about C$ 22.8-million to build the third version of Canadarm for NASA’s Lunar Gateway Program.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
