Israeli firm AVT, maker of print quality inspection products, is planning an initial public offering. CEO Shlomo Amir told Globes the IPO will take place within 6 months, depending on market conditions. It has not yet been decided whether to float shares on NASDAQ or in Europe.
AVT has developed a technology to improve print run quality. An artificial vision system installed in printing presses warns of any changes in print quality, in real time. The system is based on technologies developed by Orbot (now Orbotech) and the Israeli defense industries. The company has five registered patents, with two more patents pending. The company has also refrained from registering several other patents in order not to reveal proprietary technology.
The market is a new one with a potential volume of $1 billion of which AVT has a 60% market share. AVT employs a workforce of 85, of which 68 are in Israel. The remainder work in subsidiary marketing and support companies in the US and Belgium. To date, 170 systems have been installed of which 100 are in Europe. Installation is priced at $100-150,000 per unit.
Robertson Stephens, via Evergreen Capital Investments, holds 40% of AVT, and is interested in a US share offering. However, Germany manufactures over 60% of the world's printing presses, a fact that tilts the scales towards a European IPO.
AVT is in advanced negotiation for cooperation with one of the world's largest printing press manufacturers, located in Germany. Next week, AVT is scheduled to meet with potential investors as part of a conference hosted by Robertson Stephens in Israel.
Robertson Stephens holds, via Evergreen, 40% of AVT shares. The remainder is held by the Star Fund, Tamar Technologies and investor Yisrael Adir.
Published by Israel's Business Arena on November 4, 1999