Last week, Israeli firm Top Image issued shares on Wall Street. This week, it is TTI’s turn. TTI is a subsidiary of Team Computers of the Eisenberg Group.
TTI (Team Telecom International), intends to issue 2 million shares, representing 24% company share, at $7-9 per share. Calculating from the mid- range price, the IPO will gross $16 million, at $66.4 million company value, after money.
At the same time, Team will sell 500,000 shares, bringing $4 million into the company coffers.
On the eve of the IPO, TTI, which develops control and management systems for telecommunications service providers, took on a blue-chip partner in the form of ECI Telecom. ECI invested $2.4 million in TTI, securing it a 3.6% share, at $8 per share. In other words, ECI invested in the company at a price identical to that offered to the public.
The share issue will generate particularly high capital gains for Team. The private placement to ECI resulted in NIS 7 million capital gains. The IPO will bring in an additional $7 million, to which Teams’ offering should also be added.
TTI has experienced rapid growth, enabling revenues to increase from $1.92 million in 1993 to $5.4 million for the first nine months of 1996. During this time span, profits actually declined from $558,000 in 1993 to $331,000 in 1995.