Another Israeli company has successfully completed an IPO on the Australian Securities Exchange. NGS (Nutritional Growth Solutions) raised A$7 million (NIS 16.8 million) at the end of last week at a valuation of A$ 19 million (NIS 45 million). On its first day of being traded, the company saw its share price rise 52.5%, giving it a current market cap of A$29 million.
NGS produces protein-based dairy shakes that it says improve height and weight in short and lean children. The company was founded in 2013 by Prof. Moshe Phillip, a child endocrinologist, and Prof. Raanan Shamir, a child gastroenterologist. The company's CEO is Liron Fendell. Among its shareholders are Clalit Health Services' technology transfer company Mor Research Applications and Hadassa Bymel - Pharmacy and Nature Ltd.
The IPO was at A$0.20 per share. The company issued 35 million shares, in an offering that was oversubscribed. Both investment institutions and retail investors bought the shares. The money raised will be used for marketing and sales, branding, launching new products, research and development, and general purposes.
"We very much appreciate the strong support from investors in the flotation process. I am grateful for the opportunity to bring our nutritional solutions to more children around the world. NGS operates in large and growing markets, and we look forward to making progress on the wide range of commercial opportunities that we have identified," Fendell said.
A company presentation released shortly before the IPO points out the opportunity in China. According to NGS's figures, the market for protein-based nutritional supplements in China is worth some $2.2 billion, with average annual growth of 9.9% in recent years. Over the next eighteen months, the company plans to launch new products, to penetrate new markets, and to expand its activity in existing markets.
Published by Globes, Israel business news - en.globes.co.il - on November 1, 2020
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