Caesarstone Bat Yam Ltd. has published the prospectus for its planned IPO on Nasdaq, stating that it plans to raise up to $90 million at a company value of $485 million, at the midpoint. The company plans to offer 5.66 million shares at $14-16 per share, for gross proceeds of $79.2-90.6 million.
Kibbutz Sdot Yam, which owns 70.1% of Caesarstone will also offer 960,000 shares as part of the IPO, which will make it $13.4-15.4 million, and Tene Investment Funds Ltd., which owns 29.9%, will offer 40,000 shares, which will make it $560,000-640,000. After the offering, Kibbutz Sdot Yam will own 54.9% of the company, and Tene will own 24.6%.
The updated prospectus means that Caesarstone will hold its IPO within weeks, making it the first IPO by an Israeli company on Wall Street this year. It will be traded under the ticker "CSTE'.
The five underwriters have an over-allotment option to buy an additional 999,000 shares in equal shares Sdot Yam and Tene, but not from the company, which if exercised, will increase the offer for sale to $30 million.
The midpoint net proceeds of the IPO amount to $77.4 million. In the prospectus, Caesarstone said that it will use $25.6 million of the net proceeds to pay a special dividend to Sdot Yam and Tene, $6.5 million to buy the outstanding shares of its US distributor, and the rest to invest in equipment to boost sales, and other purposes. It estimates the cost of a new production line at $30 million.
Caesarstone sells its products in 42 countries.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2012
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