New Israelis on Wall Street yield phenomenal returns

monday.com Nasdaq IPO Photo: PR

Zim has risen 155% since its IPO in January, Global-e has risen 114% since its IPO in May and Monday.com, is up 50% in just over a week.

Two more Israeli companies completed IPOs on Wall Street with digital adoption SaaS company WalkMe raising $287 million at a company valuation of $2.6billion and ad-tech company Tremor International (Nasdaq: TRMR; LSE: TRMR) raising $129 million at a company valuation of $1.4 billion. This brings to seven the number of Israeli companies who have completed Wall Street IPOs in 2021, not including $40 billion worth of SPAC (special purpose acquisition companies) mergers that are in various stages of progress.

Three of the seven companies have produced phenomenal returns for investors: Zim Integrated Shipping Services Ltd., e-commerce solutions provider Global-e (Nasdaq: GLBE) and work operating system company monday.com (Nasdaq: MNDY).

Zim held its IPO in January and its share price fell 23% on its first day of trading. But the share quickly recovered on positive reports about repaying debts, leasing new ships and positive financial results. Consequently the share price on Friday closed at $42.34, giving a market cap of $4.9 billion, up from $15 at the IPO and reflecting returns of 182%. Many of the major shareholders took advantage of the rise and sold their shares in a secondary offering earlier this month for $40 per share.

The second of this trio of fast rising stocks is Global-e, which held its IPO in May at $25 per share and has since risen 114% to $53.50, giving a market cap of $7.6 billion. The outstanding shareholders in Global-e are Cross Ship, Deutsche post, AMI Fund and Apax as well as the company's founders Amir Schlachet, Shahar Tamari and Nir Debbi.

The share price of monday.com has risen 50% in just one week since its IPO. The company held its offering at $155 per share and is already worth $232, giving a market cap of $10.165 billion and making it the seventh most valuable Israeli company, just behind Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA).

Last week's Israeli tech IPOs on Wall Street started off on the wrong foot. Tremor International lost 5.8% on its first day of trading on Friday, while WalkMe was down 7.1% on its first day of trading, recovering slightly on Friday to end 6.3% below its IPO price.

The other two Israeli Wall Street IPOs this year have also lost ground. Gaming company Playtika (Nasdaq: PLTK), which in January held israel's biggest every IPO at $27 per share and a company valuation of $11.1 billion, is currently down 11%, with a market cap of $9.8 billion. Web behavior and traffic analytics company SimilarWeb (NYSE: SMWB), which held its IPO last month, raising $165 million at $22 per share at a company valuation of $1.6 billion is down at $19.10 per share and a market cap of $1.4 billion.

Published by Globes, Israel business news - en.globes.co.il - on June 20, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

monday.com Nasdaq IPO Photo: PR
monday.com Nasdaq IPO Photo: PR
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