Investors on the Tel Aviv Stock Exchange (TASE) are welcoming the TASE share with open arms at the beginning of its first day of trading. The share price soared over 32% in the first hour of trading, reaching NIS 9.40, reflecting a NIS 940 million market cap.
The company value in the TASE's IPO was NIS 710 million. The current market cap is almost double the value in the deal in which the local TASE members sold most of their shares a year ago.
TASE CEO Ittai Ben-Zeev, who promoted and carried out the successful offering, today commented on it, saying, "The TASE is today joining the leading companies in Israel and many stock exchanges around the world operating as public companies, with transparency, responsibility, and sharing their performance with the general public. This, the first time that a global offering is taking place on the TASE, is a great success. We hope that we have paved the way for other Israeli companies to hold IPOs, including large international investment concerns and local investors."
The value at which the TASE reached trading in its indices is 40% higher than the value at which the TASE members sold most of their shares in it (some of them were left with a holding of less than 5% of the TASE, such as First International Bank of Israel, formerly the largest shareholder in the TASE before the structural change in its ownership and the sale of shares in it to the foreign funds). The shares that reached trading on the TASE were sold by Sunsuper, Novo Holdings, Moelis Australia, and Dalton Special Holdings, which are now posting a speedy and successful exit.
The largest shareholder now in the TASE is US-Australian investment fund Manikay Partners with 19.9% of the shares, entitling it to appoint one director. Manikay acquired its shares in the TASE at a company value of NIS 551 million.
On October 3, the TASE's share is slated to enter the Tel Aviv SME60, Tel Aviv SME150, Tel Aviv Finances, Tel Aviv Insurance Plus, Tel Aviv Ramon, and Tel Aviv Allshare indices.
Meanwhile, the labor disputes between TASE's management and the workers' committee are continuing. As far as is known, the workers are dissatisfied with the current situation concerning their future employment terms and the bonuses that they will receive from the past. In the dispute over employment terms, the parties are awaiting a ruling by the labor court. Despite the acute dispute with the CEO and the allegations against him, the workers' committee also welcomed the offering and the first day of trading in the TASE shares, saying that it was confirmation of their contribution to the company over many years, and that success was a result of joint work by all of the TASE's employees.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2019
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