Arvind Chhatbar

Optical modem components maker Enablence Technologies Inc. has raised $57.5 million in its latest public offering, more than the company had previous expected.

The company had originally planned to raise $50 million on a best-efforts basis, through the sale of up to 37,037,100 common shares for $1.35 each.

Instead, the company issued an aggregate of nearly 42.6 million shares, with the syndicate of agents involved in the deal immediately exercising their 15-per-cent over-allotment option as a result of the over-subscription.

"We've always enjoyed support right from the beginning, and this illustrates that the support has been consistent and strong all along," said Enablence CEO Arvind Chhatbar in an interview with the OBJ. "It's the realization that fibre-to-the-home (FTTH) is now happening... it's becoming pretty evident that it's a reality and likely to grow significantly."

The funds will be used for "working capital, expansion of product lines, vertical integration, general corporate, and research and marketing activities," the company said in a release.

Mr. Chhatbar said Enablence would certainly be looking at acquisitions in order to "consolidate (its) global operations and activities," but noted that the company had not identified any acquisition targets as yet.

He said the company would also be looking into expanding product lines in the aerospace and defence markets.

Enablence had originally announced plans in May to raise $55 million in a similar public offering, but the offering was halted by an Ontario Securities Commission investigation into the timing of options granted to directors, officers and employees of the company on Dec. 12, 2006 and March 7, 2007.

The company refiled the prospectus for the offering in September after being cleared by the OSC.

Mr. Chhatbar said the company had reduced its funding expecations in September because Enablence "felt (it) needed a little less," having dealt with some of the expected expenses between May and September without the help of the funding.

"The support we've received has been phenomenal," he added, noting that the company is "in good financial overall standing, if not excellent."

Mr. Chhatbar said the extra $7.5 million in funding would help the company to strengthen its balance sheets in case of difficult circumstances, in addition to allowing Enablence to "consolidate its leadership position in the Fibre-to-the-Home industry."

The offering was facilitated by a syndicate of agents led by Paradigm Capital Inc. and including Haywood Securities Inc., Raymond James Ltd. and Dundee Securities Corp.