Minimarket chain AM:PM is to float on the Tel Aviv Stock Exchange (TASE). Sources inform ''Globes'' that the chain is preparing a draft prospectus and intends to make an offering at a value of NIS 150 million.
AM:PM aims to raise NIS 25 million through the issue of share options and a possible bonds issue. The proceeds will be used to finance part of its rapid expansion which is set to continue during 2006. The chain’s turnover totaled NIS 150 million in 2005, and is expected to cross the NIS 200 million mark in 2006. Pretax profit in 2005 is estimated at NIS 6.7 million, or 4.5% of turnover. AM:PM is believed to be funded primarily through supplier credit and its debts to banks are minimal.
AM:PM started out as a chain of round-the-clock kiosks known in Hebrew as pitzutziyot. Five years ago, its owners realized that in order to expand, they would have to upgrade to a convenience store chain with a 24 hour service and a wider range of products. The chain now has 16 outlets, mostly in Tel Aviv.
AM:PM was founded by the brothers Gal and Ron Belinkis, and Guy Edri, who entered the retail business following their discharge from army service. The chain’s outlets are situated mainly in densely populated areas.
Published by Globes [online], Israel business news - www.globes.co.il - on April 24, 2006
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