OPC Energy (TASE: OPCE), controlled by Kenon Holdings (NYSE: KEN; TASE: KEN), a company under the control of Idan Ofer, has completed a private placement of 4.1% of its share capital, raising NIS 155 million from four investment institutions. Two months ago, the company raised NIS 120 million from three investment institution in another private placement. The company, whose market cap is NIS 3.7 billion, issued its shares at NIS 26.50 a share, the same as yesterday's closing price.
Kenon, which owned 72.9% of OPC Energy's shares before the latest financing round, now owns a 69.9% stake in the company. At the same time, the public's holdings in company are rising to over 30%, making OPC Energy eligible for inclusion in the Tel Aviv 125 Index.
Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), which acquired 1.4% of OPC Energy's shares in the previous round, also took part in the latest round, spending NIS 15 million more and increasing its holdings in OPC Energy to 8.64%. Another investment institution acquired 2% more of OPC Energy in the current round, bringing its stake up to 4.7% of the company's share capital, while a third investment institution picked up an addition 1% of the company, giving it a total holding of 2.2%. A fourth investment institution bought 0.5% of OPC Energy's capital in its first investment in the company.
As in its previous offering, OPC Energy stated, "The company will use the proceeds for its business activity, as its board of directors may decide from time to time." OPC Energy's share is up 2.5% today, and has gained 42% since the beginning of the year.
OPC Energy builds and operates power plants, and supplies electricity to private customers and Israel Electric Corporation (IEC). The company owns 80% of the Mishor Rotem power station project, with a production capacity of 466 megawatts. At the same time, OPC is currently moving ahead with plans to construct a large power station near the Plugot Junction (Kiryat Gat) that will supply 396 megawatts. Construction will be through Zomet Energy, in which OPC has a 95% holding. The company is also currently building another power station in Hadera with a 148-megawatt capacity.
OPC Energy finished the first half of 2019 with NIS 659 million in revenue, 1.1% more than in the corresponding period in 2018. The company reported an 11% drop in net profit to NIS 40 million.
Published by Globes, Israel business news - en.globes.co.il - on August 26, 2019
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