MDA Space Ltd. confirmed that the underwriters overseeing its recent public offering have exercised the over-allotment option, resulting in the sale of 1,344,071 additional common shares priced at C$30.50 per share.
The exercise generated approximately C$41 million of additional gross proceeds for the Toronto-based space technology firm. Including this tranche, the total gross proceeds from the offering are now approximately C$341 million.
The offering was carried out by a syndicate of underwriters. J.P. Morgan and RBC Capital Markets acted as joint lead active bookrunners. Additional joint active bookrunners included BMO Capital Markets, Deutsche Bank Securities, Jefferies, Scotiabank, and Canaccord Genuity.
MDA Space said it plans to deploy the net proceeds to pursue a range of growth initiatives. Those uses include expanding the companys customer base and solution set, supporting growth among existing customers and pursuing strategic opportunities such as acquisitions or investments. The company also noted that it may use proceeds for general corporate purposes, which could include repaying portions of its existing credit facilities.
In its corporate profile, MDA Space describes itself as a provider of robotics, satellite systems and geointelligence services to the defense and space industry. The company reports a workforce of more than 4,000 employees and a corporate history extending over 55 years, with involvement in more than 450 missions.
The exercise of the over-allotment option finalizes the size of the public offering as described by the company and the underwriting syndicate. Managements stated intentions for the net proceeds highlight a combination of organic growth initiatives and potential strategic transactions, while leaving flexibility for general corporate uses including debt reduction.
Summary
The underwriters purchase of 1,344,071 common shares at C$30.50 per share added roughly C$41 million to the offering, taking total gross proceeds to approximately C$341 million. The syndicate was led by J.P. Morgan and RBC Capital Markets, with five other banks serving as joint active bookrunners. MDA Space plans to use proceeds to support expansion, existing customer growth, and potential acquisitions or investments, and may apply funds to general corporate needs including partial repayment of credit facilities.