Israeli smart glass technology company Gauzy is expected to complete an IPO on Nasdaq shortly. Last week, it filed a revised prospectus revealing the valuation it is aiming for. The Tel Aviv-based company, headed by co-founder Eyal Peso, has developed technology that it says facilitates control of the passage of light through glass, for the construction, automotive, and aeronautics industries. According to the revised prospectus, the offering price will be $17-19 per share, for a total of $71-79 million, with the underwriters holding a 30-day option on shares at the offering price that could increase the total amount raised by $11.3 million.
After the offering, assuming that it takes place within the price range sought, the company will be worth $315-352 million, or $325-364 million if the underwrites exercise their option. This is similar to the valuation of the company in its last private financing round. The company has announced that OIC Growth Fund has committed to buying over 833,000 shares, about 20% of the total offering, worth some $15 million.
Gauzy plans to use the offering proceeds for working capital, general business purposes such as buying equipment and materials, expansion of its production capacity, and R&D. The underwriters are Barclays, TD Cowen, Stifel, B. Riley Securities, and Beech Hill Securities.
In 2023, Gauzy had revenue of $78 million, 59% more than in the previous year. Its net loss, however, grew from $37.9 million in 2022 to $79.3 million in 2023. In the first quarter of 2024, revenue grew 41.9% to $24.7 million and the company’s net loss narrowed from $18.5 million to $13.2 million. At the end of the quarter, it had just $2.4 million cash.
Gauzy was founded in 2009 by Peso and its CTO Adrian Lofer. The main shareholders are Ibex Investors (32.1%) and Olive Tree Ventures (13%). Peso has a stake of 7.9% and Lofer 3.3%.
Published by Globes, Israel business news - en.globes.co.il - on June 2, 2024.
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