search
Front > News

Demand for Fattal IPO over NIS 1b

David Fattal, photo: Alon Ron
David Fattal, photo: Alon Ron
12 Feb, 2018 19:35
שלח תגובה במיילKobi Yeshayahou

The minimum company value for the offering is NIS 3.4 billion, before money.

The part of the IPO by hotel company Fattal Holdings for investment institutions is about to culminate in a big success. Fattal, which sought to raise NIS 340 million at a company value of NIS 3.4 billion, before money, today obtained commitments from investment institutions to buy shares for over NIS 1 billion.

The auction envelopes will be opened, revealing how much the company decided to raise, and at what value. The part of the IPO for the public is scheduled to take place in the coming days.

Last week, Fattal Holdings controlling shareholder David Fattal was forced to cut the company value for the IPO by 15%, apparently under pressure from the underwriters, led by Leader Underwriters, Orion, Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), and Barak Capital. The institutional stage of the IPO therefore took place at a company value of NIS 3.4 billion, rather than the NIS 4 billion value at which Fattal planned to issue 10% of its capital. The minimum value is before a 2.5% prior commitment charge, so the value of the company for investment institutions participating in the IPO will be NIS 3.3 billion. Reasons for the lower value include the upheaval in stock markets in Israel and overseas and the failure or partial success of equity offerings carried out on the stock exchange in recent months.

Fattal Holdings, founded by David Fattal 20 years ago, currently has 167 hotels with 32,000 rooms in 17 countries worldwide. Shareholders in the company include David Fattal (71.8%), his divorced wife Hadassah Fattal (9.65%), and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) (18.55%). The cost of David Fattal's salary as CEO of the company is NIS 9 million annually.

Fattal Holdings has benefited from the tourism boom in Israel, and especially in Europe, in recent years. Incoming tourism has been prospering (Fattal Holdings' figures indicate that over half of global foreign tourism is concentrated in Europe). The company says that this trend is projected to continue in the coming years, given the increase in leisure and average salaries in Western Europe.

Published by Globes [online], Israel Business News - www.globes-online.com - on February 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

David Fattal, photo: Alon Ron
David Fattal, photo: Alon Ron
Inflation credit: Tali Bogdanovsky Unexpectedly low February CPI reading cuts inflation

While inflation in Israel in the 12 months to the end of February 2025 is lower than forecast, housing prices continue to rise.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Competition Authority allows Delek takeover of Isracard

The Competition Authority is considered the easier of the two regulatory hurdles that the deal must overcome, the other being the Supervisor of Banks.

David Amsalem credit Noam Moskowitz, Knesset Spokesperson's Office Rafael to pay state NIS 444m dividend

The minister in charge of the Government Companies Authority, David Amsalem, has approved the payment by the defense company.

Barak MX air defense system credit: IAI IAI profit jumps 55%

Israel Aerospace Industries posted a net profit of $493 million for 2024, and ended the year with an all-time high orders backlog of $25 billion.

A TSG system in tactical use credit: PR TSG signs cooperation agreement with US defense co

The agreement includes the integration of TSG's advanced technologies into sensor-based defense systems, which will be integrated into the operational systems of US defense units.

Bria CEO Yair Adato credit: Kseniia Poliak Israeli visual generative AI co Bria raises $40m

Bria’s Visual Generative AI platform empowers businesses to create predictable, controllable, and on-brand content that aligns with their visual language.

Amnon Shashua and Aviram Ziv credit: Eyal Izhar OrCam stymied by investor dispute with Shashua

Demands by institutional investors are blocking the visual and hearing impairment device developer's recovery plan.

Work on the Green Line credit: Bar Lavi Egged wins tender to operate TA light rail Purple, Green Lines

NTA awarded the tender to Egged, which already operates the Red Line, despite government ministry opposition to one operator for the entire network.

Gabi Seroussi illustration: Gil Gibli Board chooses Seroussi as IAI chair as Erdan freezes candidacy

Israel Aerospace Industries board chose Gabi Seroussi as chair even though he did not to go through the preliminary process of the Government Companies Authority appointments review committee.

Bavli Park penthouse credit: Eyal Tagar Tel Aviv Park Bavli penthouse sells for NIS 43m

A 44th floor penthouse in one of the two towers in businessman Yitzhak Tshuva's Park Bavli project has been bought by an Israeli businessperson.

El Al aircraft credit: Yoav Yaari El Al pilots receive nearly NIS 250,000 bonus each

Thanks to the agreements signed with the unions in 2018, El Al's employees as well as senior management share in last year's success.

Pentera CEO Amitai Ratzon credit: Eyal Izhar Israeli security validation co Pentera raises $60m

Pentera's platform enables security teams to analyze complete attack paths, identify root causes, and prioritize remediation for effective risk reduction.

Tel Aviv credit: Shutterstock Supply of unsold new homes hits record

Israel's real estate market is sliding into recession with 78,000 unsold new apartments in January, the Central Bureau of Statistics reports.

D&B chairman Doron Cohen and Meitar partner Dan Geva Meitar reclaims title of Israel's biggest law firm

Meitar has first place with 537 lawyers, followed by Herzog Fox Neeman with 512 lawyers, according to the latest Dun's 100 rankings.

First International Bank of Israel CEO Eli Cohen credit: Eyal Toueg First Int'l posts top return on equity

First International Bank of Israel's return on equity in 2024 was 19%, the highest among Israel's banks.

Dina Ben Tal Ganancia credit: Guy Kushi & Yariv Fein El Al almost quintuples profit

The airline posted a net profit of $545 million for 2024, 4.7 times the profit in 2023, and an all-time high.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018