Israeli construction and infrastructures company Denya Group Building Israel (formerly Danya Cebus) has filed a supplementary prospectus ahead of an initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE), which will combine new shares and an offer to sale by controlling shareholder Africa-Israel.
Market sources believe that Denya will seek to raise between NIS 600 million and NIS 800 million at a company valuation of between NIS 2 billion and NIS 2.5 billion. The IPO will be led by Leader Underwriters and Discount Capital Underwriters.
The offering is expected to yield substantial returns for the controlling shareholders in Africa-Israel - Lapidoth Capital (80%), controlled by Jacob Luxenburg, and Altshuler Shaham Gemel and Pensions (20%), who last year bought full control of Africa-Israel for NIS 676 million as part of a debt settlement.
Denya is one of Israel's largest construction companies, which also has international operations in Romania, Poland and New York. The company acts as a building contractor for residential and infrastructure projects and also operates as a developer for residential projects in Israel and Romania. The company also has subsidiaries operating in construction manpower placement, manufacturing building products, planning and building electro-mechanical systems, manufacturing and installing aluminum window frames, and foundations works.
Denya also has a 52% stake in Africa-Israel Residences and as part of the IPO process, it will sell 12% of the company, with the remaining 40% distributed as a dividend to Africa-Israel shareholders. After the IPO, Denya and Africa-Israel Residences will become sister companies.
Published by Globes, Israel business news - en.globes.co.il - on January 28, 2021
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