Australian satellite operator NewSat has started trading its ordinary shares on the US-based over-the-counter exchange OTCQX through the sale of American depository receipts (ADRs).
The company, which is currently listed on the Australian Securities…
Australian satellite operator NewSat has started trading its ordinary shares on the US-based over-the-counter exchange OTCQX through the sale of American depository receipts (ADRs).
The company, which is currently listed on the Australian Securities Exchange (ASX), stated that one NewSat depository receipt is equivalent to 100 of its ordinary shares.
Commenting on the new trading, CEO Adrian Ballintine said: “Trading on the OTCQX will complement our ASX listing and enable us to provide our US investors with relevant information and timely news to assist in the analysis, value and trade of the company securities.”
The company added that the OTCQX marketplace provides an online platform for US investors to buy NewSat shares in their time zone and expects it to increase the company’s exposure to US investment communities.
The Bank of New York Mellon will serve as the operator’s principal American liaison, providing guidance on OTCQX requirements. The ADRs will trade under the ticker symbol ‘NWTLY’.
This summer, NewSat finally executed the US$611m financing it secured for its Jabiru-1 Ka-band satellite project. While the bulk of the financing took the form of US$399m in export credit agency-backed funding, A$105m (US$108m) was secured through the sale of 262.5 million shares at A$0.40 per share. International institutional investors represented more than 80% of the acquirers of those shares.
Ballintine previously told SatelliteFinance that the company estimates that over its 15-year life Jabiru-1 will generate about US$3.5bn of revenue at an 80% margin, roughly US$170m EBITDA per year.
Jabiru-1 is scheduled to be launched in 2015, after Jabiru-2, a hosted payload on the Measat-3B spacecraft that is expected to be placed into orbit in Q1 2014.
NewSat recently announced that the construction of Jabiru-2 by Astrium has been completed and the satellite is now in storage in Toulouse preparing for its launch by Arianespace next year. The satellite will be located at 91.5E.
