The IPO on the London Stock Exchange by Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) subsidiary AFI Development is the largest ever by an Israeli company. A study by “Globes” found that the second largest IPO was by Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR; LSE:PCCD) in 1999, and the third largest was by Playtech Cyprus Ltd. (AIM:PTEC) in March 2006.
AFI Development is the fifth largest real estate company listed in the LSE and London’s Alternative Investment Market (AIM). It is also the only company among the top ten that operates in Russia. The large size of the company’s IPO will presumably gain it entry into one of the LSE’s main indices at the next update.
The largest real estate company on the LSE is Land Securities Group plc (LSE:LAND), followed by Hammerson plc (LSE:HMSO), Liberty International plc (LSE:LII), and Slough Estates plc (LSE:SLOU). Three companies in the top 20 operate in the Russian market: Raven Russia Ltd. (LSE:RUS), RGI International Ltd. (LSE:RGI), and Fishman Holdings subsidiaryMirland Development Corporation plc (AIM:MLD).
Lev Leviev’s Russian partner in AFI Development, Alexander Khaldey owned 12% of the company before the IPO through Nirro Group SA, worth $730 million on the basis of the value for the IPO. Nirro Group’s holding was diluted to 10% by the IPO.
Africa-Israel: timeline
- Founded in 1934 by a group of South African Jews.
- The company buys land on which the settlement Savion is founded. The Savionim brand is identified with the residential neighborhood built by the company, and becomes a leading brand.
- Lev Leviev acquires 80% the company in early 1997 from Bank Leumi (TASE: LUMI) at a company value of $400 million.
- In February 2006, mandated by the Bachar capital market reform legislation, Bank Leumi sells at 15.8% stake in the company to Leviev at a company value of NIS 7.1 billion.
- In April 2007, Africa-Israel achieves a market cap of $7 billion (NIS 28 billion).
- Africa-Israel has six TASE-listed companies: Africa-Israel Properties Ltd. (TASE: AFPR), Africa-Israel Housing Ltd. (TASE:AFHS), Africa Israel Hotels Ltd. (TASE: AFHO), Danya Cebus Ltd. (TASE: DNYA), Packer Steels and Metals Ltd. (Packer Plada) (TASE: PKER), and Negev Ceramics Ltd. (TASE:NGEV).
- In April, the company buys “The New York Times” building in Manhattan for $525 million.
According to Leviev, the secret of success is “donate 10% of profits.”
Published by Globes [online], Israel business news - www.globes.co.il - on May 3, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007