Formula Group chairman and Public Companies Association committee member Dan Goldstein is already preparing Formula subsidiaries for dual listing. "I've been fighting for dual listing for two years, and for me, this is a great day. The new dual listing is almost automatic and easy to process. I assume that numerous companies will do it once the regulation takes effect. We at Formula will list our companies currently traded in the US immediately after it becomes possible. I'm referring to Crystal, Magic and ForSoft, and I hope it will include other companies too. "
"Globes":
Do you get the impression that your colleagues will go in for mass registration?
"My impression is that high tech companies will certainly register, but not all of them. A sizable question in making the decision is whether the company has Israeli investors or an activity the market is interested in. I assume that companies with very few Israeli investors, or having little interest or understanding will not register.
"For example, a company focusing on a certain component for the communications market may decide that the Israeli market does not understand its business and may therefore not register. Overall, I assume a respectable portion will register. After all, it's a positive step."
As chairman of a company already traded dually, what advice would you give someone registering tomorrow?
"Whoever believes dual listing will double the trading volume of his company's share is certainly making a mistake. If, however, it leads to a 10-15% increase in turnover, it will be good for the company, and for Israel's capital market itself.
"In any event, I assume the regulations will go into effect in the near future, so that at the beginning of September we'll see effective company listing. I think the Ministry of Finance deserves a medal for the groundwork it did on the subject. The Public Companies Association fought a long campaign, and we've got results, which proves that things can be changed.
Published by Israel's Business Arena on 31 July, 2000