Israeli defense company Silynxcom has filed for a small public offering on Wall Street. The company filed a prospectus at the end of last week to raise $8-12 million on the New York Stock Exchange (NYSE). The company plans to issue 2 million new shares at a price of $4-6 per share. The valuation of the company will be around $30-40 million. Silynxcom has a ‘going concern’ qualification attached to its results.
The company, which was founded in 2005, develops, manufactures and markets tactical communications devices including headsets for the battlefield. The headsets are integrated into third-party products and are used by security forces. According to the prospectus, the company has recorded revenue of $148 million since it was founded and its customers include Elbit Systems, which integrates Silynxcom’s headsets into its systems as well as the German and Korean police forces.
The prospectus mentions the Israel-Hamas war which broke out on October 7 and Silynxcom writes, "We sell our products directly and indirectly to the IDF. From October 10 until the date of the prospectus, we received orders from the IDF and Israel Police worth $1.825 million for the supply of products in the short term." The company expects to receive more orders as the war continues.
In the first half of 2023, the company's revenue was $3.1 million, up from about $2 million in the corresponding period in 2022. However, its operating loss widened during this period from $278,000 to $2.3 million, and it fell from a net profit of $1 million to a net loss of $2.2 million. In 2022 ended the company has revenue of $7.3 million and a net profit of $1.8 million.
Based in Netanya and the company has 31 employees and another 14 part-time employees and subcontractors. Since 2011, the company has been managed by Nir Klein and his brother, Ron Klein, is the chairman of the board, while Nir Klein's wife, Gal Klein, is the director of marketing and sales in Israel. Nir Klein is also the controlling owner of the company, with 57.7% of the shares, will decrease to 39.6% after the IPO.
In the planned IPO, the company is being supported by underwriters ThinkEquity and law firms Sullivan and Worcester and Greenberg Traurig.
Published by Globes, Israel business news - en.globes.co.il - on October 29, 2023.
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