Mapal Green Energy to hold AIM IPO next week

Mapal Green Energy
Mapal Green Energy

Mapal, whose technology reduces the cost of waste treatment, seeks to raise £2-3 million.

Mapal Green Energy has submitted to the UK Financial Conduct Authority an initial document for an IPO on the AIM stock exchange in the UK. The company did not state the size of the offering or the company valuation for it, but it is apparently seeking to raise £2-3 million at a value in the low tens of millions of dollars. In other words, this is a small company holding an IPO on a stock exchange for small companies of its type. According to the London Stock Exchange website, the first day of trading in the share will be July 10, meaning that the company is currently in the midst of its road show.

Mapal, which began on Kibbutz Yagur in the foothills of the Carmel mountain range, develops systems that significantly reduce the energy costs of sewage purification plants. The company will hold its IPO under the name of Mapal Group, which will own 100% of Mapal Green Energy.

Mapal was founded by CTO Hanoch Magen, who created its technology, and CEO Zeev Fisher. The company's system, one of the few capable of floating in sewage pools, injects them with delicate oxygen bubbles that accelerate the purification processes. The saving in energy costs achieved by the system makes it possible to make back the investment in it within five years.

"These system are good for over 20 years, with significant savings in the high energy costs incurred in operating sewage purification plants," Fisher previously explained to "Globes."

Since it was founded, Mapal has installed its system in over 40 sewage purification plants in Israel and overseas. In addition to the UK, it has already signed contracts for a series of projects for upgrading sewage purification plants in South Africa, Brazil, Angola, and Congo, and according to Fisher, one of its plans for the coming year is to enter the Australian market, which is in great need of innovative purification technologies, particularly cheap ones.

28 of the places where the system has been installed are in Israel, particularly in purification plants used by private companies with industrial plants, which are trying to cope with the stricter environmental legislation enacted in recent years, and to treat poisonous waste created by various production processes.

In any case, as indicated by the size of the IPO, Mapal is a company just starting out whose revenue is still small (only $1 million last year). In a few days, this young company will join two other Israeli companies that held IPOs on the AIM this year: binary options company TechFinancials, which raised $5.3 million and is currently traded at a $28 million market cap (no change from the IPO price) and digital advertising company Adgorithms, which raised $42 million, and is currently traded at a $127 million market cap (also no change from the IPO price).

Four Israeli companies have raised a total of $523.5 million in the UK capital market since the beginning of the year, including secondary flotations by real estate company Summit Germany plc (AIM: SMTG) and by Playtech Cyprus Ltd. (LSE:PTEC), Teddy Sagi's online gambling giant.

Published by Globes [online], Israel business news - - on July 1, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Mapal Green Energy
Mapal Green Energy
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018