Online dictionary company Babylon Ltd. raised NIS30 million in its IPO on the Tel Aviv Stock Exchange (TASE) yesterday. The offering of stocks and warrants was oversubscribed. If the warrants are exercised, the company will make an additional NIS 76 million over the next four years.
Babylon chairman Zeev Zilber said, “We’re pleased to become the first Internet company traded on the TASE. Babylon is one of the best-loved programs in Israel, and making the public a partner at the present time, when the company is growing rapidly, seems to us to be the natural and right step for continuing our development.”
Babylon develops, markets and sells translation software. The company has over 35 million registered users, and has sold over 1.5 million licenses in over 160 countries. The company plans to expand its activity by upgrading the technology and content base of existing programs. It also intends to improve its online marketing capabilities and open new markets.
Babylon posted an operating profit of NIS 1.14 million on NIS 9 million revenue from its core business of translation software in the third quarter of 2006, 107% more than for the corresponding quarter of 2005. The company predicts the same growth ratein the future.
Bablyon’s main shareholders at the eve of its IPO are Reed Elsevier Ventures with a 27% stake; Formula Vision Technologies Ltd. (TASE: FVT) - 25%; Fishman Holdings subsidiary Monitin Publishers Ltd. - 20%; Product Computers Ltd. - 8%; and Zohar Zisapel - 5%.
The underwriters are Discount Underwiting & Issuing Ltd., Apex Underwriting & Issue Management Ltd., and Migdal Underwriting and Business Promotion Ltd.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on February 15, 2007
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