Despite disappointing demand of only NIS 11 million in the public tender, Shapir Engineering has completed its IPO on the Tel Aviv Stock Exchange (TASE), and trading in the company's share will begin this week. Shapir Engineering raised NIS 439 million (gross) at a company value of NIS 2.2 billion, after money, putting it in 51st place on the TASE in market cap. The share is accordingly slated for inclusion on the Tel Aviv 100 Index at the beginning of January in the framework of fast track inclusion.
The largest investor in the offering by the infrastructure and real estate company, controlled by the Shapira family, was the Altshuler Shaham Ltd. investment house, which purchased shares for NIS 182 million, 38% of the amount raised from the public, through the provident and mutual funds it manages, thereby acquiring an 8.3% stake in Shapir Engineering.
Other investment institutions participating in the offering were Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), while investment houses Psagot Investment House Ltd., Meitav DS Holdings Ltd. (TASE:MTDS), and Yelin Lapidot were conspicuous by their absence, as were Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), and Menorah Mivtachim Holdings Ltd. (TASE: MORA), which feared that the company value for the offering was too high.
Shapir Engineering CFO Amit Birman coordinated his company's IPO, which was led by underwriters Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), Leumi Partners Ltd., Apax Partners, and Excellence Investments Ltd. (TASE: EXCE). Owing to the weak demand for the public tender, the underwriters had to fulfill their obligation by buying shares for NIS 51.7 million in order to fill out the offering.
Leumi Partners previously spent NIS 19.5 million on shares in the public tender, meaning that Leumi Partners and Poalim IBI spent NIS 25 million each. Leumi Partners was also appointed to manage the sale of the underwriters' shares on the stock exchange in order to prevent saturation of the market, which would cause the price to fall.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014