A week after going public and getting listed on the Toronto Stock Exchange, MDA announced today it had raised an additional $60 million in their over-allotment option.
The funds come from the sale of their previously announced over-allotment option which had been granted to the underwriters. The underwriters include BMO Capital Markets, Morgan Stanley Canada Limited and Scotiabank, as joint bookrunners, with Barclays Capital Canada Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., CIBC World Markets Inc., National Bank Financial Inc. and Stifel Nicolaus Canada Inc.
The underwriters had the option to purchase 4,285,725 common shares at a price of $14.00 per common share which was the IPO price. With the stock rising over 22% in the first week of trading, exercising their over-allotment option seemed a likely scenario.
The company which had hoped to price their initial offering at $16 – $18 per common share, had to settle at $14 after the market was lukewarm to IPO’s in the current turbulent market. MDA still managed to raise $400 million in the initial offering. Now, adding the additional $60 million and with the stock off to a roaring start out of the gate, the company and its shareholders must be happy.