The Internet Research Institute (IRI), a Japanese company, is planning an IPO on the Tel Aviv Stock Exchange (TASE). The company wants to raise at least NIS 43.9 million at a company value of NIS 220 million, after money, according to the revised prospectus that it submitted today.
IRI, which focuses on Internet-related technologies, is controlled by founder, chairperson, and CEO Hirosh Fujiwara. According to the revised prospectus, IRI will offer the public 87,000 units of 100 ordinary shares each, with a minimum price of NIS 505 per unit (NIS 5.05 per share). The units will be offered to the public in an auction. IRI plans to make connections with selected investors before the offering in order to obtain prior commitments to buy shares.
IRI will be on the Tech-Tech index
Another revision in the prospectus concerns the number of shares and the division of holdings in the company after the IPO. When the offering is completed, assuming a full response to the prospectus, IRI's shareholder's equity will total 43.5 million shares, meaning that at the offered price, the company's value will be NIS 220 million.
Fujiwara will retain 61.7% of the company's shares after the IPO, compared with 77.2% at present. The public will own 20% of IRI's share capital. The share can therefore be included on the Tel Tech index, which requires that the public hold at least 10% of a company's shares and a market cap of at least NIS 100 million.
Rise in revenue
IRI operates in three sectors: information services, information technology, and miscellaneous (investment in startups). The company plans to use the proceeds from its IPO to acquire and invest in technologies and companies, primarily in Israel and Japan, dealing in its fields of business, and for allocating research and development activity to be carried out in Israel and Japan. The company believes that most of the proceeds will be invested in the acquisition of and investment in companies.
IRI's revenue grew 14.5% to $7.2 million in the first half of 2017, and its pre-tax profit was $2.7 million, a 4.9% increase. The company had $11.5 million in cash and cash equivalents at the end of the first half, after having generated $893,000 in cash flow from current activities.
Published by Globes [online], Israel Business News - www.globes-online.com - on December 12, 2017
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