Geothermal and recovered energy power company Ormat Industries' (TASE:ORMT) wholly owned US subsidiary Ormat Technologies has filed a revised draft of the prospectus it filed three months ago with the US Securities and Exchange Commission for a share issue amounting to $100 million. Ormat Technologies hopes to sell 6.5 million shares at a price ranging between $15 and $17 each.
The underwriters (led by Lehman Brothers) will receive an option to buy a further 937,500 shares. After the IPO, Ormat will start to be traded on the New York Stock Exchange under the symbol ORA.
At the mid-range price of $16, Ormat Technologies will raise some $100 million in the IPO, at a value of $390 million, before money.
The draft prospectus states that the company intends to pay a quarterly dividend amounting to at least 20% of its annual profit, starting from the end of the first quarter following the IPO.
The IPO is expected to be completed by mid-November. Parent company Ormat Industries expects to post a capital gain of $57-60 million from the share issue. Its shareholding will be diluted from 100% to 79.6%, and to 77.2% if the underwriters exercise their over-allotment options in full.
Published by Globes [online] - www.globes.co.il - on October 24, 2004