Home Manufacturer fund Telesat debuts on Nasdaq as the latest TSAT pure play space stock

Telesat debuts on Nasdaq as the latest TSAT pure play space stock

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Telesat CEO Dan Goldberg poses for a photo at the offices of Telesat, a Canadian satellite communications company, in Ottawa, Ontario, Canada, March 24, 2021.

Blair Gable | Reuters

Canadian satellite communications company Telesat went public on Nasdaq on Friday, bringing another purely space-based action to the market.

“We are an established operator, with an established business, today generating a significant amount of cash flow with our existing customers, who have always been very far-sighted about where this market is going,” CEO told CNBC from Telesat, Dan Goldberg.

Telesat shares rose to $ 41.52 and jumped 16% at the start of the session, before giving up most of the gains to trade largely unchanged.

The listing took place following an exchange with Telesat shareholders, with the company effectively replacing the former public company Loral Space & Communications. Prior to the transaction, Telesat’s shareholders were Loral and the Canadian pension fund PSP, which respectively held 64% and 36% of Telesat’s shares.

“We haven’t issued any new shares at this point – it was really about streamlining the ownership structure,” Goldberg said. “It’s cleaner.”

A rendering of Telesat’s low-earth orbit broadband constellation

Telesat

Telesat’s main growth project is the low Earth orbit broadband satellite network it is building, called Lightspeed. Unlike the customer focus of SpaceX’s Starlink constellation, Telesat plans to use its 298 Lightspeed satellites to provide high-speed fiber-optic Internet to business-to-business or enterprise customers around the world.

Goldberg pointed out that “Lightspeed is capital intensive” with the company expecting it to cost $ 5 billion.

Telesat has so far provided over $ 3 billion in funding for Lightspeed, including a $ 1.1 billion investment from the Canadian government. The company will mobilize the remaining necessary funds from export credit agencies, Goldberg said, Telesat “in the process of completing these discussions.”

The company launched an experimental low-earth orbit satellite in 2018, which Goldberg says has been used for customer demonstrations and validation of the technology.

Telesat hired Franco-Italian space equipment manufacturer Thales Alenia Space to build the satellites. The company does not yet have a specific target date for Lightspeed’s first launches, Goldberg noting that “Thales has had some supply chain issues” that have caused delays.