Renewable energy co Meshek Energy raises NIS 140m in IPO

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Owned by kibbutzim and moshav cooperatives, the company develops, manufactures and operates photovoltaic solar energy arrays.

Renewable energy company Meshek Energy has raised NIS 140 million in an IPO on the Tel Aviv Stock Exchange, selling a 37% stake to the public at a company valuation of NIS 235 million, before money. The company, which is owned by the economic organization of 270 kibbutzim and moshav agricultural cooperatives, develops, manufactures and operates photovoltaic solar energy arrays for the production of electricity for sale to the Israel Electric Corporation (IEC) (TASE: ELEC.B22).

Meshek Energy is the fourth successful IPO on the TASE in the past few weeks following the offerings by Doral Renewable Energy, driving safety company SaverOne and Elco Holdings Ltd. (TASE: ELCO) energy arm Supergas.

The IPO of Doral and the current buzz in the renewable enery sector paved the way for yesterday's successful offering by Meshek Energy. Since 2018, Meshek has been cooperating with Doral in the field of rooftop solar panel arrays. Meshek also build arrays on kibbutz and moshav land.

Meshek currently produces 39 megawatt of electricity and is developing and building projects on 70 sites that will produce a further 134 megawatt. The company's biggest project is at Moshav Yakhini near Sderot in the northern Negev where it is investing NIS 160 million in building a solar array that will supply 48 megawatt and will be connected up to the electricity grid in 2023.

The company had revenue of NIS 8.5 million last year after having no revenue in 2018. Net loss in 2019 was NIS 11 million compared with a net loss of NIS 8 million in 2018.

Published by Globes, Israel business news - en.globes.co.il - on June 19, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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