Sources inform “Globes” that Holmes Place Israel is considering an issue on the Tel Aviv Stock Exchange (TASE). Following the recent successful issues on the TASE, the company's board of directors is considering the preferred issue structure (bonds, shares, or a combination of both).
The issue is unlikely to take place this quarter, but during the third quarter of 2004. Holmes Place Israel plans to use the proceeds from the issue to expand in Eastern Europe. The company plans to open at least two fitness centers this year, including one in Prague and another in Warsaw. Holmes Place Israel's main business is in Israel and Greece.
A subsidiary recently raised €6 million for 45% of its shares at a company value of €13.3 million (NIS 72 million). Czech Venture Partners and Private Equity Association led the round. Edmund de Rothschild Venture Capital Management also participated in the round, having acquired 10% of Holmes Place Israel earlier this year. Holmes Place Israel had an estimated company value of NIS 150 million at the time.
Holmes Place Israel has an estimated NIS 100 million in revenue a year from its 13 fitness centers in Israel.
Holmes Place Israel is the most luxurious and expensive chain of fitness centers in Israel. Its subscribers include many celebrities. Holmes Place Israel is the local franchise of Holmes Place plc (Pink Slips:HOLPF). Holmes Place Israel has two subsidiaries operating fitness centers in Greece and Eastern Europe.
Published by Globes [online] - www.globes.co.il - on April 14, 2004