Adama Agricultural Solutions Ltd. (formerly Makhteshim-Agan) has filed a preliminary draft prospectus to the US Securities and Exchange Commission (SEC) to raise $300 million in an IPO. The pesticide and insecticide manufacturer has yet to decide whether to list on the New York Stock Exchange (NYSE) or Nasdaq. The lead underwriters will be Goldman Sachs and Merrill Lynch.
The draft prospectus did not mention a company value but market sources believe the company has a valuation of $3.5 billion before money in mind (including taking off a $1.2 billion debt). Following the filing of the prospectus, the company is expected to embark on a road show during which it will disclose additional details such as the pricing range of shares for the IPO when it will be possible to accurately calculate the value of the company.
Those expected to profit from the IPO will be the company's senior executives including CEO Chen Lichtenstein. Twelve million options are being set aside that can be realizes as regular shares are being set aside this is 2.7% of the share equity worth an estimated $28 million.
Adama said in response, "The company launched an options plan in January 2014 and this month is recycling some of the options released after the organizational change. These options that were released and returned to the reserve were granted to a broad layer of managers (but not the most senior executives) and employees including middle management in Israel and abroad.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2014
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