MDA Space offering underwriters exercise greenshoe

Executive Summary

• MDA Space Ltd. announced the exercise of its underwriters' overallotment option for its initial public offering (IPO) in the United States.
• The exercise of the overallotment option adds approximately $41 million (U.S.) in gross proceeds, bringing the total gross proceeds of the offering to approximately $341 million (U.S.).
• The company intends to use the net proceeds to pursue growth strategies, including expanding its customer base, supporting existing customers, pursuing strategic opportunities (such as acquisitions), and repaying existing credit facilities.

Key Details

• Overallotment Exercise: Underwriters exercised the overallotment option to purchase an additional 1,344,071 common shares.
• Price: The shares were purchased at the price to the public of $30.50 (U.S.) per common share.
• Additional Proceeds: The exercise generated additional aggregate gross proceeds of approximately $41 million (U.S.).
• Total Proceeds: The total gross proceeds of the offering are now approximately $341 million (U.S.).
• Underwriters: The offering was conducted through a syndicate led by J.P. Morgan and RBC Capital Markets as joint lead active bookrunners. Joint active bookrunners included BMO Capital Markets, Deutsche Bank Securities, Jefferies, Scotiabank, and Canaccord Genuity.
• Use of Proceeds: Net proceeds will be used to:
  • Expand customer base and solutions.
  • Support the growth of existing customers.
  • Pursue other strategic opportunities, which may include acquisitions or investments.
  • General corporate purposes, including repayment of a portion of amounts outstanding under existing credit facilities.

Notable Quotes

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