MDA Space Inc. is set to raise $300 million through a stock sale as it prepares to list its shares on the New York Stock Exchange (NYSE). This move comes as the Canadian satellite manufacturer aims to leverage growth opportunities.
MDA’s Market Activity
Currently traded on the Toronto Stock Exchange, MDA shares closed at $44.17 on Tuesday evening. The stock has experienced an upward trend recently, rebounding from lows caused by the loss of a significant satellite manufacturing contract last year.
Stock Pricing and Use of Proceeds
The company intends to price the new shares based on market conditions. The funds generated from this offering will support several strategic initiatives:
- Expansion of the customer base
- Support for existing customers’ growth
- Pursuit of acquisitions or strategic investments
- General corporate purposes, including debt repayment
As of the end of 2025, MDA reported long-term debt amounting to $272 million. Additionally, the company ended the last quarter of 2025, on December 31, with revenues nearing $500 million, a notable increase from $346 million the previous year.
Current Contracts and Future Outlook
MDA boasts a contract backlog valued at $4 billion, with a robust pipeline projected at $40 billion. The company has also recently established a new defense division named 49North, responding to the rising demand for dual-use products.
Notably, MDA has entered into a partnership to provide military satellite communications for Canadian forces operating in the Arctic. Furthermore, they secured a contract from the U.S. Missile Defense Agency for the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program.
Investment Banking Partners
For this stock offering, J.P. Morgan and RBC Capital Markets will serve as joint lead bookrunners. Additional support will come from BMO Capital Markets, Deutsche Bank Securities, Jefferies, Bank of Nova Scotia, and Canaccord Genuity Group Inc.
