Forsoft (formerly Idan), is about to offer $3 million in shares on NASDAQ, thereby turning from a company shell, to a full blown company with content, activity, cash and public interest.
At the current Forsoft share price on Wall Street - $10.6 - the company is expected to raise $30 million. The offering is due to take place during the first quarter of ’98, managed by the Swiss investment bank, UBS and with the participation of BancAmerica Robertson Stephens investment bank.
The principal beneficiary of the offering will be Formula Systems, owned by the brothers Dan and Gad Goldstein. Formula, which today holds 90% of Forsoft shares, will be diluted to 66% of capital and expects to post a NIS 60 million capital gain in Q1 of 1998.
In the past two months, Forsoft has reported several partnerships in material contracts, such as the upgrading of systems to the year 2000, for Bezeq and Bank Leumi, and winning the Bezeq tender for collection, together with Aurec. These and other contracts have placed Forsoft’s backlog of orders and work at more than $50 million for the next two years.
The company’s change in character and fields of endeavour were expressed in Forsoft’s value which soared, and today stands at $100 million. However, trading turnover in shares is very low, generally amounting to a few thousand shares. The current offering is likely to increase the floating quantity and improve share marketability.
At the end of Q3, Forsoft reported NIS30 million in revenue, with a net profit of NIS 4.6 million. Revenues for the first nine months reached NIS 72.5, and net profit - NIS 7.3 million.