Bank Hapoalim hopes to sell up to 60% of Israel's largest credit card firm at a company valuation of NIS 2.5 billion.
Bank Hapoalim (TASE: POLI) is holding a huge IPO today of its credit card company Isracard. The bank is selling 50%-60% of Isracard, in an offer for sale, which values Israel's biggest credit card company at about NIS 2.5 billion. On the eve of its sale, Isracard distributed an exceptional dividend of NIS 867 million. This will be the largest IPO held on the TASE in recent years.
Yesterday, Hapoalim reportedly carried out a blitz of telephone calls and meetings with institutional and wealthy private investors ahead of the offering. Hapoalim hopes to benefit from the positive atmosphere in the markets.
Hapoalim is selling Isracard following the recommendations of the Strum Committee that competition in the credit market will be enhanced by separating the banks from the credit card companies. Bank Leumi (TASE: LUMI) has already sold Leumi Card to Warburg Pincus for NIS 2.5 billion, the same amount as Hapoalim is likely to receive for Isracard. Hapoalim will have until 2021 to sell its remaining stake in the credit card company.
Published by Globes, Israel business news - en.globes.co.il - on April 3, 2019
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