24% of the company’s shares will be offered at a company value of $62 million.
Apparently, all obstacles standing in Grofit’s way are being removed, and the US flotation is starting to take shape. The company submitted a draft prospectus the Securities and Exchange Committee (SEC) for the sale of 2.3 million shares for $15 million.
The issue, in consideration of 24% of the company’s shares, reflects a company value of $62 million after money. In comparison, the company is valued on the Tel Aviv Stock Exchange (TASE) at $11 million. Grofit hopes to execute the flotation by mid June.
Grofit’s US issue has already set several precedents. First of all, it is the first real estate company traded on the TASE to issue shares in New York. Since the value on the TASE is much lower that the requested issue in New York, Grofit is requesting to be delisted from the TASE.