The IPO of Beersheva-based Metal-Tech on London's AIM exchange was successful in terms of price, but not in terms of quantity. The company floated 21% of its capital, and raised 10.5 million pounds (about $20 million), at a company value of $95 million, at a share price of 130 pence (according to an exchange rate of 1.9 US dollars to the pound).
Trading in the share will start on Friday, under the symbol MTT.
The underwriter for the issue was Durlacher.
The company had intended to raise $30 million at the issue price, by floating 30%. "In the end, we preferred to compromise on quantity in order not to compromise on price," Metal-Tech CFO Modi Ashkenazi said.
Metal-Tech is a material and chemical manufacturing and research and development company. It specializes in advanced materials, and claims to be a leader in the production of pure, high quality tungsten and molybdenum oxide and powders used in the manufacture of heavy metals, cutting tools, work tools, radiation protection panels, and light bulbs, in addition to many other defense and aeronautic products.
The company was founded in 1989.
Published by Globes [online], Israel business news - www.globes.co.il - on May 10, 2005