The Elco Holdings energy unit hopes to raise NIS 250 million at a company valuation of NIS 1 billion, before money.
The initial prospectus published by energy company Supergas ahead of its TASE IPO reveals a highly profitable company. Revenue in the first quarter of 2020 was NIS 188 million, up 5.7% from the corresponding quarter of 2019. Higher sales by Supergas, which is the energy arm of Elco Holdings Ltd. (TASE: ELCO) was boosted by higher liquid petroleum gas (LPG) sales because of the cold winter.
Net profit in the first quarter of 2020 was NIS 72.7 million, up 10.9% from the first quarter of 2019.
Only six months after completing the acquisition of Supergas from Azrieli Group Ltd. (TASE: AZRG) for NIS 817 million, Elco is hoping to add value to Supergas by floating it at a company valuation of NIS 1 billion before money. Elco hopes to raise NIS 250 million and hundreds of millions more in bonds.
Published by Globes, Israel business news - en.globes.co.il - on June 3, 2020
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Aviv Levy and Shany Moses