High demand in the initial public offering (IPO) of Israeli retail discount chain Max Stock on the Tel Aviv Stock Exchange (TASE) pushed the company's valuation up to NIS 1.7 billion. Company shareholders including Apax Partners AMI private equity fund, and Max Stock founders Uri Max and Evan Neumann are selling shares worth NIS 500 million.
The share price moved to NIS 12 per share towards close of trading, higher than the planned IPO range of NIS 9 - NIS 11 per share and raising the company valuation at the higher end of the range from NIS 1.5 billion to NIS 1.7 billion.
The IPO was led by US investment bank Jefferies Group and much of the offering was expected to be sold to overseas investors. The domestic part of the IPO was led by Leader Capital Markets.
The IPO represents a huge success for AMI managed by Zehavit Cohen and Apax partners. AMI acquired a controlling 55% stake in Max Stock in 2017 for NIS 170 million at a company valuation of NIS 300 million. AMI has thus seen its investment show returns of nearly 500% in just three years.
Max Stock was founded in 2004. The chain sells a range of items including toys, baby products, household goods, disposable and party items and office and school equipment at discount prices through its 50 branches around Israel, which are operated by subsidiaries or franchisees.
According to Max Stock's prospectus, revenue was NIS 472 million in the first half of 2020, up 34% from the first half of 2019. Net profit was NIS 33 million in the first half of 2020, up 8% from the first half of 2019.
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