Fattal Hotel Management Ltd.'s TASE IPO is underway. Fattal, owned by businessperson and hotelier David Fattal (72% of the share capital), his divorced wife Hadassah Fattal (9.5%), and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) (18.5%), today published a prospectus for an offering of 10% of the company's share on the TASE. The planned company value for the IPO is NIS 4.2-4.5 billion.
Concurrently with the equity offering, Fattal is expected to register its existing NIS 100 million in Series A bonds, which will become marketable. The offering is scheduled for early next month.
According to the prospectus, the company will use the proceeds from the offering to pay for its regular activity and development. NIS 50 million will be used to repay 50% of the balance of the company's owners' loans provided by its shareholders.
No underwriting is expected for the IPO, while distribution of the shares will be led by Leader Capital Markets, Orion, Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), and Barak Capital.
David Fattal founded the hotel chain in March 1999. The chain specializes in holding, operating, leasing, and managing hotels in Israel and Europe, and the acquisition and construction of new hotels. Fattal Hotel Management currently has 167 hotels with 32,000 rooms in 17 countries.
The chain's 39 hotels in Israel are managed by CEO Avia Mizrahi-Magen. 21 of these hotels are owned by the chain, 11 are rented, and seven are managed by the chain under the Leonardo, U, Herods, NYX, and Rothschild 22 brand names.
Managing director Daniel Roger manages the chain's hotels in Europe, where it has 128 hotels: 48 fully or partly owned, 76 rented, and four managed. The chain's largest concentration of hotels, 59, is in Germany. Fattal is believed to be the second largest hotel chain in the UK, with 43 hotels.
Fattal is benefiting from the tourism boom in Israel and worldwide. The company finished the first nine months of 2017 with NIS 1.8 billion in revenue, 30% more than its NIS 1.4 billion in revenue in the corresponding period in 2016. The company's net profit grew 19% to NIS 153 million in the first nine months of 2017.
Fattal's EBITDA rose 18% to NIS 423 million in the first nine months of 2017, following 16% growth in 2011-2016.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 24, 2018
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