Real estate company Elad Canada, controlled by Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva, is taking another step towards holding an IPO on the Tel Aviv Stock Exchange (TASE). Elad Canada, which operates real estate development and income-producing real estate in Canada and the US, revealed today that it had obtained an external valuation for its activity. According to the company, the valuation was conducted independently by BDO Canada, the Canadian branch of international accounting firm BDO. According to this assessment, the value of Elad Canada is in the C$ 958 million-1.07 billion range (NIS 2.54-2.84 billion). Elad Canada plans to hold its IPO at a company valuation of NIS 2.7 billion.
Elad Canada reported last month that it was stepping up its consideration of holding an IPO on the TASE in the first half of 2020. If the IPO is held, it will be led by Leader Underwriting.
Elad Canada, buys, maintains, operates, and improves income-producing properties and land in the US and Canada. The company also develops, constructs, and sells dwellings in Canada. As of the end of September, the company's equity was C$459 million, amounting to 35.7% of its total assets. At the same time, Elad Canada increased its equity by C$120 million last month, following an owners' contribution consisting of a transfer of additional real estate holdings to its ownership.
This donation came from Elad Group, controlled by Tshuva, which itself is planning a bond issue on the TASE for the purpose of financing its activity. These bonds will probably be secured by a lien on shares in Elad Canada, so the Elad Canada's IPO will put a clear price tag on the company, which could support Elad Group's bond issue.
Elad Canada has been classed as a reporting bond company since completing its first issue of Series 1 bonds to the public in August 2018. The company issued another series, Series 2, this year. The two series are currently traded on the TASE, and bear a combined nominal value of NIS 797 million. Series A, which consists of 1.8-year bonds is currently trading at a 2.3% annual yield to maturity, while Series B, which consists of 2.4-year bonds, is trading at a 2.5% annual yield to maturity.
Published by Globes, Israel business news - en.globes.co.il - on December 18, 2019
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