After last year’s two failed attempts to issue shares in London, most recently in September 1996, the members of Kibbutz Maagan Michael have decided to come home. The kibbutz may issue shares in Plasson, its plastics factory, on the Tel Aviv Stock Exchange. According to general manager Shaul Asheknazi, despite the previous failures, the company has not given up plans to raise funds through a public share offering.
Since its initial exposure to the share market in 1996, Plasson has been in contact with investors and underwriters both in Israel and the UK, with an eye towards executing the plan.
Asheknazi added that, if the public share issue did go through, Plasson’s company value would be similar to that set last year. Plasson was set to raise $30 million in London, in return for a 25% share, representing $90 million company value, before money. The present issue will be lower, as the TASE bylaws allow for issuances of under 25%.
The failure to issue Plasson shares in London was attributed to the political events in which Israel was involved at that time. The first was Prime Minister Benjamin Netanyahu’s election victory, after which it was decided to delay the IPO by several months. In September 1996, Plasson was almost set to complete the issue but the opening of the Hasmonean Tunnel, and the ensuing riots, brought about another cancellation.
Plasson manufactures polyurethane pipes connectors used in agriculture and industry. The company is considered a world leader in its field. Its market is mainly in Europe. 1996 revenues were $84.6 million, and revenues for the first half of 1997 were $49 million, compared with $45 million in the corresponding 1996 period. Profits for the first half of 1997 were $5 million.
Plasson’s has a worldwide workforce of some 500 employees.