MDA Space descends after share offering for satellites deal

Royal Bank of Canada

08/07/2026 22:19

** U.S.-listed shares of Canadian space tech co MDA Space
 MDA.N  down 7.6% post-market to $35.72 after
acquisition-related equity raise news
** MDA announces bought deal offering of 20 mln shares at $35.60
for $712 mln gross proceeds
    ** Offering price represents 7.9% discount to U.S. shares
last sale of $38.67
** MDA to use net proceeds to fund concurrently announced
acquisition of approx 70% interest in Collecte Localisation
Satellites (CLS) for about €567 mln (C$920 mln)
    ** The Centre national d'études spatiales (CNES), the French
space agency, to retain approx 30% interest in CLS
    ** CLS expected to generate about €286 mln (C$465 mln) of
rev in 2026, supported by more than 14,000 customers across
roughly 150 countries, MDA says
    ** BMO and RBC joint lead bookrunners for equity offering;
JP Morgan, Scotiabank and BofA joint active bookrunners
    ** MDA's U.S. shares, which fell 2.2% on Weds, have roughly
doubled YTD

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))