TORONTO - Shares of Baylin Technologies Inc. (TSX:BYL) began trading Wednesday following the multinational antenna maker's initial public offering on the Toronto Stock Exchange.
Formed in Israel in 1978 by an expatriate working in the United States for Motorola, Baylin is a specialist in making antennas for mobile devices.
Its registered office is in Toronto but has no significant operations in Canada. Cash flow will come from subsidiaries in Israel, China, South Korea and, eventually, Vietnam.
Baylin said Wednesday that it sold about 6.25 million common shares at an IPO price of $8 per share, providing gross proceeds of about $50 million, including overallotments.
According to regulatory documents filed as part of the offering, Baylin expected to get up to $44.5 million in net proceeds if the underwriters exercised all their overallotment options.
Of that, Baylin was planning to allocate $15 million on a new manufacturing operation in Vietnam, $10 million to reduce debt, and the remainder for general operating funds.
"Our company has a long track record of creating game-changing advances in antenna technology," president and CEO Ephraim Ulmer said in a statement Wednesday.
"I am confident that with our market-leading technology and experienced technical and management team we can successfully unlock the next chapter of growth for Baylin."
The stock opened at $8.20 on the Toronto Stock Exchange but gave up some early gains to trade at $8.05 at mid-afternoon.