Mitel plans to trade under the symbol "MNW" around June 27 subject to certain conditions, which the firm did not disclose in a press release on Wednesday. It has conditional approval now to open trading at that time.
Andrea Johnson, a partner at Fraser Milner Casgrain LLP, says the firm's presence on the Toronto exchange will not only secure the attention of investors, but may also make it easier to raise capital in Canada as well as gain a following from Canadian-based analysts. (Mitel currently has three analysts listed on its website.)
She adds it is also a win for the exchange.
"It's very good for the TSX because the TSX has lost a number of mid-size technology companies in the last few years (to acquisitions)," she says, citing Bridgewater Systems as an example.
"It will really help the TSX if there's another high-profile tech company on its index. I think it's a good news story for the TSX and for Canada."
The company does not plan to issue more shares on the TSX. This will not dilute Nasdaq holdings, but will give shareholders the option of holding shares on one or the other exchange, Ms. Johnson said.
Mitel issued a press release in association with the announcement but said it would not provide interviews, citing a quiet time before the next quarterly results are issued.
"The expansion of our trading to include both the Nasdaq and Toronto Stock Exchange platforms has been an objective of ours since our initial public offering," stated Steve Spooner, Mitel's chief financial officer.
"Given the appetite for technology investment on the TSX, a dual listing at this time allows us to expand our shareholder base and provides us with access to a knowledgeable investor base in Canada."
The technology and service seller's IPO on the Nasdaq on April 22, 2010 was $12.75, down $1.25 from its announced price of $14 and much less than an earlier stated goal of $18 to $20.
Shares have slid for the most part in the two years following, not reaching the IPO price since then. Shares traded around US$2.30 each at the nadir, and on Tuesday closed at $4.22 each.
Mitel posted net income of US$4.4 million, reversing a net loss of $4.9 million last year, in its last quarterly results. It has undergone restructuring in the past year.
The company has met or beat guidance in revenues and earnings in the last four or five quarters, Mr. Spooner said in a recent interview.
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