The institutional stage of Aeronautics's Tel Aviv Stock Exchange (TASE) IPO took place yesterday, with demand totaling NIS 510 million. It is believed that all the insurance companies took part, as well as a number of investment institution managers. The offering is the largest in Israel this year, and one of the biggest in recent years.
The minimum price in the offering was NIS 18 per share. The shareholders decided to sell shares for NIS 390 million in the institutional stage at NIS 18.50 per share, and the company raised NIS 53 million. The other shares were sold through an offer for sale. In the public part of the IPO, scheduled for next week, an additional NIS 90 million will be offered. The IPO reflects a company value of over NIS 1 billion.
The company's shareholders, headed by the Bereshit and KCPS funds (each of which has a 27% stake) and Viola Private Equity (23.4%), sold half of their holdings in the company.
Leumi Partners Ltd. led the offering, together with Leader Holdings and Investments Ltd. (TASE: LDER), Discount Underwriting and Investment, Menorah Mivtachim Holdings Ltd. (TASE: MORA), Epsilon Underwriting, and Barak Capital.
Before the IPO, economists from the Entropy consultant firm analyzed the Aeronautics, and the results were sent to the investment institutions. Entropy estimated the company's value at NIS 396 million before money.
Founded in 1997 by Avi Leumi, the Aeronautics group provides intelligence solutions based on UAV systems with a variety of UAVs having diverse configurations and capabilities, electro-optical systems, sensor and communications systems, observatory balloons, and drones.
Aeronautics has a number of subsidiaries: RT (observatory balloons), PoziDrone (drones), Controp (observation systems, lenses, and electro-optics), Commtact (communications and encryption solutions), and Zanzottera (UAV engines). Aeronautics also manufactures UAVs, and the subsidiaries make components and supplementary products for its business, so that the entire supply chain is within the group, with no dependence on external parties.
Aeronautics's reports show that 35% of its revenue last year came from Europe, 30% from Asia, 18% from Israel, 10% from the US, and 7% from Africa. The company has 660 employees and 70 customers in 52 countries. Two of the customers are very important, with one accounting for 20% of Aeronautics's revenue last year and the second for 13%. Termination of the company's agreements with either of these two customers for any reason is liable to deal a serious blow to its business results.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 15, 2017
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