Fresh Market raises NIS 243m in TASE IPO

Shlomi and Yossi Amir  photo: PR

The supermarket chain's valuation was NIS 750 million before money, the same as for its unsuccessful attempted offering last year.

Food retailer Fresh Market, controlled by brothers Yossi and Shlomi Amir, is becoming a public company on the Tel Aviv Stock Exchange (TASE). After the company's effort to hold its IPO in July 2018 was unsuccessful, the Amir brothers have now raised NIS 250 million (NIS 243 million net of commissions for underwriters and consultants) for the company. Discount Capital Underwriting led the offering, which left the Amirs with 75% of the company's capital.

The offering was held at a valuation of NIS 750 million for Fresh Market, before money, the same value at which the Amirs tried to raise money the previous year. In that case, however, most of the shares that the they were trying to sell were through an offer for sale, with a smaller number of new shares. In this IPO, the company is issuing 25% of its shares.

Before the IPO, Fresh Market said that it had obtained a commitment from investment institutions to buy shares for NIS 300 million at this valuation. The company added that after the offering is completed, and subject to its completion, it would distribute a NIS 220 million dividend to all of its shareholders no later than 80 days after trading begins in the share. Fresh Market, which has no net debt, will be included in the leading TASE indices.

Fresh Market reported in its IPO prospectus that its revenue grew 17% to NIS 1 billion in 2018, with an 8% rise in same-store sales, together with a 33% gross profit margin and a 7% operating profit margin. The company's net profit was up 11% to NIS 55 million in 2018.

The group has five different sub-brands: Makhsanei Mazon, Mahksanei Lahav (a chain with 13 branches acquired from the Dan cooperative in 2016 for NIS 85 million, plus NIS 15 million for inventory), Dudu Supermarket, Tip Tov, and of course Fresh Market.

The chain has 31 branches with an average space of 700 square meters per branch. There are four stores in Herzliya and three each in Tel Aviv, Petah Tikva, and Haifa. The rest are spread over northern, southern, and central Israel. The chain, whose annual turnover is NIS 1 billion, has 1,250 employees, including 95 in the company headquarters. Its customers' club has 150,000 members under its various brands.

Published by Globes, Israel business news - - on May 12, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Shlomi and Yossi Amir  photo: PR
Shlomi and Yossi Amir photo: PR
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