Renault and Nissan importer Carasso Motors Ltd. is scheduled to bring forward the institutional tender of its IPO on the Tel Aviv Stock Exchange (TASE) to tomorrow. Sources inform ''Globes'' that the company also plans to cut the minimum price of the offering by 7%, and that it will try to raise NIS 237 million at a company value of NIS 700 million, before money, and NIS 937 million, after money.
Carasso Motors originally planned to hold the IPO at a company value of NIS 750 million, before money, and almost NIS 1 billion, after money.
Although Carasso Motors set a minimum price of NIS 1,500 per unit in its prospectus, the company plans to cut the price to NIS 1,395 per unit of 100 shares at NIS 13.95 per share, instead of NIS 15 per share.
Carasso Motors will issue by16,666,600 shares in the offering, bringing its total issued share capital to 66,666,600 shares.
Carasso Motors also plans to distribute a NIS 50 million dividend after the IPO is completed, making the offering more attractive.
Carasso Motors reduced the minimum price of the offering and brought it forward because of the prevailing capital market conditions, with the Tel Aviv Stock Exchange (TASE) falling sharply in the past month. Institutional investors apparently pressured the company and the underwriters to cut the price of the offering.
The underwriters are Clal Finance Underwriting Ltd., Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), Leumi Partners Ltd., and Leader Underwriters (1993) Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2011
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