Startup Brenmiller Energy yesterday took an important step towards the Tel Aviv Stock Exchange (TASE) by completing the part of its offering for financial institutions. The company raised NIS 44 million at the minimum price of NIS 17 per share set in the tender, at a company value of NIS 150 million, before money.
In the public stage, which will take place next Wednesday, the company will attempt to raise NIS 16 million more, and trading in Brenmiller's shares is slated to begin next week. Leumi Partners Ltd. and Epsilon Investment House Ltd. led the offering.
As part of the offering, company founder and owner Avi Brenmiller will convert a NIS 124 million owner's loan he granted to the company into capital (one share), subjection to completion of the issue on the way to becoming a public company. Before the issue, Brenmiller Energy has a NIS 117 million equity deficit.
Brenmiller was CEO of Solel Solar Systems, and led its sale to Siemens for over $400 million in 2009. His share of the deal was $40 million. He invested all or most of this sum in his new venture - Brenmiller Energy, which he founded five years ago. The company has developed a heat energy storage system.
Family management
Brenmiller Energy currently has 30 employees, most of them former employees of Solel Solar, and 75% of them engineers. Brenmiller himself is company chairman and CEO. His two sons, Doron and Nir, are also employed in the company and serve as directors and deputy CEOs (Doron is responsible for business development marketing and Nir for finances and operations).
The device developed by the company's engineers is capable of absorbing energy from a variety of sources, including wind energy stations, solar panels, and the electrical and water networks. It stores the energy and supplies electricity by generating steam. The company, which has no revenue yet, is earmarking most of the money from its offering for construction of two power stations projects at Mishor Rotem near Dimona.
The first, Rotem 1, is a combination of NIS 1.5 megawatts in energy capacity, including energy from solar radiation and from natural gas. Construction is scheduled to begin in the first quarter of 2018, and 20 years of commercial operation is due to begin a year later, after which investment in the facility is expected to total NIS 60 million. The second project, Rotem 2, combines energy from solar radiation, organic waste, and natural gas, with a 10-megawatt capacity. The estimated cost is NIS 350 million, and construction is scheduled to begin in the second quarter of 2019 and be completed during 2020. Both projects will supply Israel Electric Corporation (IEC) (TASE: ELEC.B22) with energy for 20 years.
Published by Globes [online], Israel Business News - www.globes-online.com - on July 31, 2017
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