Sources inform "Globes" that demand amounting to NIS 1.15 billion was received at the pricing stage of the flotation of the Tel Aviv Stock Exchange, which is due to close today. This represents five times the quantity of shares that the stock exchange sought to sell.
The Tel Aviv Stock Exchange is offering 32% of its shares for NIS 222 million at a valuation of NIS 700 million.
The price in the offering is expected to close at NIS 7 per share or a little more.
The public stage of the offering is planned for today, and if all goes according to plan the Tel Aviv Stock Exchange will have a new listed company, under the name Tel Aviv Stock Exchange.
In high quality offerings, investors generally inflate their orders knowing that they will receive only part of them. In this instance, the stock exchange limited orders to 4.9%, so that there would not be a single party at interest. Among the bidders are investors from Europe, North America and Australia. It is estimated that foreign investors' orders amounted to about 80% of the shares on offer, with the rest to be allocated to local financial institutions.
This is the first time that there has been a clear majority of foreign investors in an offering on the Tel Aviv Stock Exchange, which in part is thanks to good work on the part of CEO Ittai Ben-Zeev and investment bank Jefferies, which led the offering.
Trading in the shares will commence on Thursday.
The Israeli underwriters for the offering are Leader Underwriters, Leumi Partners, Poalim IBI, Discount Capital, Barak Capital, and Orion. The underwriters and consultants will enjoy commissions totaling NIS 15-20 million.
Published by Globes, Israel business news - en.globes.co.il - on July 29, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019