Canadian fuel-cell company, Ballard Power Systems has announced that it has closed an upsized $550 million bought deal offering of common shares. The company sold 14.87 million common shares at a 7 per share. It has the potential to raise up to 82.5 million in additional proceeds if the underwriters use their option to buy up to 2.23 million more shares within 30 days to cover over-allotments. The joint book-runners for the offering were TD Securities Inc and National Bank Financial Inc and the underwriters included BMO Nesbitt Burns Inc, CIBC World Markets Inc, Raymond James Ltd, and Cormark Securities Inc.
Ballard intends to use the proceeds to further improve its balance sheet figures to provide additional flexibility to finance its growth strategy, which covers product innovation, investments in production capacity expansion and localisation, future acquisitions, and strategic partnerships and investments. Ballard initially expected to raise just $350 million, excluding over-allotments but ended up increasing the size of the offering.
Ballard was established in 1979 to conduct research and development of high-energy lithium-ion batteries. The company now offers zero-emission polymer electrolyte membrane fuel cells used in the electrification of buses, commercial trucks, trains, marine vessels, passenger cars, and forklift trucks. In 2017, the company became the first fuel-cell manufacturer to power buses for more than 10 million cumulative kilometers of revenue service. Ballard has also launched its products for heavy-duty vehicles and marine applications.