Delek Group Ltd. (TASE: DLEKG) and Israel Chemicals Ltd. (TASE: CHIM) today announced that they plan to float at least 25% of their joint venture IDE Technologies Ltd. on the London Stock Exchange. The two companies own IDE in equal shares.
IDE will issue Global Depository Shares (GDS). The issue is due to take place in December. Goldman Sachs International and Merrill Lynch International are the global coordinators, bookrunners and underwriters, and HSBC is the co-lead manager.
IDE did not disclose the price range for the proposed offering, but sources believe that it plans to raise up to $200 million at a company value of $500 million, before money.
IDE was founded in 1965. The company develops both thermal and seawater reverse osmosis desalination - the two prevailing technologies for seawater desalination, and is active in 40 countries, including China, India, Israel, Australia, Latin America, and the US. It has designed and built more than 370 facilities to date. It added that it has an 11% market share in "those countries where Israeli companies are able to conduct business and compete on even terms with other businesses."
IDE said that it posted $70.7 million revenue in 2006 and a gross profit of $26.5 million on $75.6 million in January-September 2007. It added that it would use proceeds from the IPO for specific projects including investment in the Hadera desalination facility, and anticipated mergers and acquisitions.
IDE CEO Avshalom Felber said, "IDE is well positioned to maintain and enhance its share of the rapidly growing desalination market in markets such as China, India, Israel, Australia, Latin America and the USA where water shortages are likely to continue. We believe the planned fundraising will enable IDE to capitalize on its strong track record of earnings growth, profitability and cash generation to continue the company's expansion."
Delek Group rose 1.5% on the TASE in morning trading but Israel Chemicals fell 0.1%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2007
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