In its first financial statement since its IPO in February, Big-Tech 50 R&D Partnership (TASE: BIGT.L) has reported that the value of the investments of the Partnership has risen over its first six months of trading by about 32%. The Partnership has recorded an accounting profit of $4.9 million, of which $747,000 has already been received. The Partnership has decided to use the net profit from the amount received for the benefit of buy-back of Partnership units worth about $440,000.
As of the end of June 2021, the Partnership had invested $15.2 million in 10 target companies (and as of today $17.2 million in 11 companies), of which two companies - ironSource and Payoneer - have completed IPOs on the stock market in New York. ironSource held its offering at a valuation of about $11 billion, more than four times the value at which Big-Tech 50 invested in the company and Payoneer held its offering at a valuation of about $3.2 billion, double the value at which Big-Tech 50 invested in the company.
As part of the offering of the companies, Big-Tech 50 realized the maximum permitted in each of the investments (about 15% of its holdings) and received in exchange a total of about $1.1 billion, containing a gross profit of $747,000. The Partnership now intends to use this profit in order to exercise a buy-back of Partnership units.
Big-Tech 50 CEO Yochai Zeid-Ronen said, "The Partnership continues to implement its investment strategy, and is proud of the successful IPOs of two of the companies in its portfolio on the stock exchange in New York - ironSource and Payoneer - in a period of just six months. Following the IPOs the Partnership recorded a significant profit, part of which has already been received, and the Partnership decided to use it for the buy-back of Partnership units worth $440,000. We are witnessing a period of boom and growth in the tech sector in the world, in an era in which Covid illustrates the scale of the advantages contained in the advanced solutions of many tech companies. We are continuing to invest in the best companies in their fields, which provide the most advanced products and solutions, out of the belief that these companies will in the future yield the most major value for investors and will be in the most advantageous position in relation to rivals."
The Partnership was founded with the aim of putting together a portfolio of the 50 biggest Israeli tech companies, out of a desire to create an index that will expose their success to the public and investors.
At the end of the second quarter of 2021, cash balance stood at about $9.5 billion, the equity of the Partnership amounted to about $27 million and total assets on the Partnership's balance sheet amounted to about $29 million.
Among the target companies in which Big-Tech 50 has invested are Sisense, Trax, Verbit, PerimeterX, Outbrain, Orcam, Payoneer, Fundbox, Via, ironSource, and Kenshoo.
Published by Globes, Israel business news - en.globes.co.il - on August 19, 2021
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