Construction company Danya Cebus has successfully completed an IPO on the Tel Aviv Stock Exchange (TASE). Demand for the offering was NIS 360.4 million, exactly the amount that the company sought to raise.
Danya Cebus shares will start to be traded on the TASE this week. The IPO took place at a price of NIS 58 per share, giving the company a pre-money valuation of NIS 1.65 billion and a post-money valuation of NIS 1.8 billion. The offering consisted of NIS 146.3 million raised by the company directly, and an offer for sale by Africa Israel amounting to NIS 214.1 million.
The proceeds of the offer for sale will be used by Africa Israel to buy a 12% stake in Africa Israel Residences from Danya Cebus for NIS 215.1 million, such that in effect Danya Cebus will receive NIS 360 million gross.
Before the IPO, Danya Cebus held 52% of Africa Israel Residences. It will distribute its remaining 40% stake as a dividend in kind to Africa Israel, so that after the move is completed Africa Israel Residence will change from being subsidiary of Danya Cebus to being a sister company.
Following the IPO, the public holds 20.1% of Danya Cebus and Africa Israel 79.9%. Africa Israel itself is held by Lapidoth Capital (TASE: LAPD) (80%) and Altshuler Shaham Provident Funds and Pension (TASE: ASPF)(20%). The two companies bought Africa Israel a year ago in its second debt settlement.
The underwriters in the IPO were Leader Underwriters, Discount Capital Underwriting, Poalim IBI, and Barak Capital.
Danya Cebus is one of the largest construction companies in Israel. It has also built projects in Romania, in Poland, and in New York. In the first nine months of 2020, it posted a net profit of NIS 74 million on revenue of NIS 2.66 billion.
Africa Israel's 79.9% stake in Danya Cebus is worth NIS 1.435 billion, and its 52% stake in Africa Israel Residences is worth NIS 910 million, so that in total Africa Israel has assets worth NIS 2.35 billion, and, following the debt settlement, it has no debt. Just a year ago, Lapidoth Capital (controlled by Jacob "Luxy" Luxenburg) and Altshuler Shaham Provident Funds and Pension paid only NIS 676 million net for 100% of Africa Israel, which means they have made a 250% return on their investment so far.
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2021
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