One of Canada's high tech success stories, DragonWave, is moving onto the Nasdaq exchange, a big step for both the wireless hardware company and underwriter Canaccord Capital.
Ottawa-based DragonWave, already listed on the Toronto Stock Exchange, is selling a total of 12.97 million shares and listing on Nasdaq. Based on the current price of the stock, the transaction should bring in $100-million.
Canaccord and Piper Jaffray are leading the offering, and it's the first Nasdaq initial public offering lead for the Canadian dealer, which has ramped up its U.S. investment team over the past year.
Rounding out the Canadian content, CIBC World Markets and GMP Securities have substantial presence in this underwriting, and RBC Dominion Securities, Dundee Securities and TD Securities are also in the selling syndicate.
DragonWave is selling 7.45 million shares from its treasury, and this cash will be used to fund capital spending needed to ensure the company can fill increasingly larger equipment orders from wireless clients.
Major shareholders in the company, included several executives, are taking cash off the table by selling another 5.52 million DragonWave shares.
Canaccord took DragonWave public early in 2007 at $3.95 a share. Over the past year, this stock is up 148 per cent.
Andrew Willis