Israeli construction and infrastructure company Shikun & Binui Holdings Ltd. (TASE: SKBN) has completed a private issue of shares to institutional investors totaling NIS 600 million, at NIS 9 per share.
The share issue, which was led by Barak Capital Underwriters, was completed at a 5% discount on last Thursday's closing price. In contrast to previous stock issues, controlling shareholder Naty Saidoff did not participate in the offering, and diluted his holding by about 12% to 41% of equity. In the previous two offerings, when Shikun & Binui raised NIS 330 million in December 2022 and NIS 251 million in June 2022, Saidoff participated and injected NIS 270 million into the company.
A capital market source said that Saidoff's non-participation does not necessarily reflect any lack of confidence in the company by the controlling shareholder and he may have been because of the swift nature of the offering.
Insurance and finance companies Phoenix and Migdal, which were already parties at interest in Shikun & Binui, bought shares for NIS 60 million and NIS 100 million respectively in this offering. Phoenix now holds a 10% stake in the company and Migdal holds 6%. Clal Insurance bought shares for NIS 300 million and now holds a 6.2% stake. More Investment House bought shares for NIS 80 million and other investment institutions bought the balance of the shares.
Published by Globes, Israel business news - en.globes.co.il - on August 7, 2023.
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