Toddler keyboard and software manufacturer Comfy Interactive Movies is ready to take a bold step, and raise funds on the TASE. The company wishes to raise $25-30 million in return for a 25-33% share. The IPO will be made at $70-80 million company value.
Why is this a bold step? First of all, because raising capital on the TASE has become a rare thing. The last share issue in Tel Aviv was Mula Center’s, seven months ago. But the Comfy IPO is different, as this is a high-tech start-up with a minimal business record and sales geared primarily for the export market. Generally, this sort of share issue is meant for NASDAQ or AIM, where the requirements are lower.
Comfy and its underwriters, IBI and Leader, decided to take the chance and go public in Tel Aviv. However, as they are aware of the TASE’s limitations, most of their marketing efforts will made to foreign investors, mainly Europeans. Marketing will be handled by Societe Generale. IBI’s experience with share issues to foreign investors include Israel Discount Bank and Isrotel; but young Comfy is clearly a different sort of company.
Comfy was founded in 1993 by 27-year-old Itai Kohavi, who owns a 15% company share. Itai Kohavi is the son of Dr. Igal Kohavi, former general manager of Clal Computers and DSP Group, and today a senior manager within the Dovrat-Shrem group.
Ties to Igal Kohavi haven’t hurt his son’s company, as evinced by Comfy’s investor group and shareholders. The company’s major shareholder is a 30-strong investor group which own 16% via Maritime Bank’s trusteeship. The Dovrat-Shrem group owns 12%, of which 4% are held by Poalim Investments. Shamrock owns 11% of Comfy.
Other shareholders include Dankner, Corex and US investment firm Cowan & Co. Another investor is Davidi Gilo, who holds a 2% share and who knows Igal Kohavi from his days at DSP Group.
Comfy is a developer of both keyboard and multimedia software intended for children aged 1 to 6. 1996 sales turnover was $3.8 million compared with $2 million in 1995.