Gazit-Globe Ltd. (TASE: GLOB), controlled by chairman Chaim Katzman and president Dori Segal, has launched its road show for a public offering of shares on the New York Stock Exchange. Yesterday, the company filed its prospectus with the US Securities and Exchange Commission (SEC) for the offering of 12 million shares, all of which will be sold by the company, but did not disclose the pricing. The shares will be listed under the ticker "GZT".
In the prospectus, Gazit-Globe said that, on December 4, 2011, its share closed at NIS 39.28, or $10.52, based on the Bank of Israel exchange rate of that day of NIS 3.732/$.
On this basis, the company can expect to raise a gross $126.2 million.
The underwriters, Citigroup Inc. (NYSE: C) and Deutsche Bank Securities LLC, have a 30-day over-allotment option.
Gazit-Globe's parent company, Norstar Holdings Inc. (TASE: NSTR) announced that it will buy 2-3 million shares as part of the offering. Norstar owns 58.5% of Gazit-Globe.
Gazit-Globe and its subsidiaries own and operate more than 660 properties worldwide with an aggregate value of NIS 68.7 billion, which generated NIS 6.3 billion net operating income in 2010. In the prospectus, Gazit-Globe lists the following subsidiaries: Austria's Atrium European Land Ltd. (ATX: ATR; Euronext: ATRS), Finland's Citycon ojy (HEX:CITY1S), Equity One Inc. (NYSE: EQY) in the US, First Capital Realty Inc. (TSX:FCR) and Gazit America Inc. (TSX: GAA) in Canada, ProMed Properties Inc. Gazit Brazil Ltda. which owns medical office buildings in the US and Canada, Royal Senior Care LLC, Gazit Germany Beteiligungs GmbH & Co. KG, Gazit-Globe Israel (Development) Ltd.., and Israeli contractor Dori Group Ltd. (TASE: DORI).
Gazit-Globe's share price fell 3.7% in early trading today to NIS 39, giving a market cap of NIS 6.2 billion. Norstar's share price fell 1.1% to NIS 69.63, giving a market cap of NIS 1.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 6, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011