BATM Advanced Communications of Yokneam, which operates in the data communications field, raised $12.5 million on London's Alternative Investment Market in exchange for 21% of its shares according to a company value of $60.5 million. This is the largest Israeli IPO to date on that exchange, both in terms of the volume of capital raised and in terms of the company value.
BATM issued 6.51 million shares at 125 pence per share. Commerce in the company's share will begin on Friday, July 12. The issue was implemented at a historic price earnings ratio of 23.
BATM was established in 1991 by Dr. Zvi Marom, the company's general manager, and Gershon Bras, the company's CEO. The company's sales have increased impressively since then, reaching $7.61 million in 1995, when it posted profits of $2.65 million. BATM considered an IPO on the TASE in 1994, however the stock market crash saved it this dubious honour.
The offering in London is the company's first capital influx. It employs 75 persons and has financed its growth through independent sources until now, an extremely unusual event in the Israeli hi-tech world. This is also the reason that the list of controlling shareholders includes only the company’s founders and employees, without the traditional representative of venture capital.
Zvi Marom explains that the company preferred to issue in London as most of its sales until now have been in Europe. Marom stated, "We are building a long-term industry and not a cream company, therefore we need serious institutional investors, the sort who can and will help us when we need to raise capital a second time." Marom explains that fears of the volatility and instability of the NASDAQ was the principal reason for choosing AIM.