Two more Israeli companies are about to join the 17 that have already listed for trading in Australia over the past three years. Stockhead, an Australian website covering public technology companies in the country, reports that drink vending machine company Nicevend, and Shekel Brainweigh (whose plan to hold an offering in Australia was first reported in "Globes" early this year), are the current candidates for an offering in the country.
Nicevend has developed a vending machine for slush-type beverages, including protein and fruit-based drinks regarded as healthy enough to be sold in schools, while sweetened drinks are banned in schools in certain countries. The company operates in the US market, but has chosen to hold its IPO in Australia. Nicevend's invention reportedly makes it possible to create slushy drinks with low sugar content.
Nicevend entered the US market in 2015. Its revenue totaled $1.6 million in 2017, a very low sum for the Nasdaq. The company is nevertheless likely to take advantage of the reputation gained for Israel by Sodastream International Ltd. (Nasdaq: SODA;TASE: SODA) as a leader in special beverages to get attention from Australian investors. Nicevend is seeking to raise A$7.5 million.
Shekel Brainweigh has developed special scales for many industrial sectors. The company, which posted a $1.9 million profit on $18.2 million revenue in 2017, plans to raise A$10.5 million in Australia at a company value of NIS 150 million.
According to the Australian Securities Exchange, as quoted by Stockhead, six more Israeli companies are considering an offering in Australia, including blockchain company Security Matters.
Fewer companies going to Nasdaq
Drones company ParaZero (ASX: PRZ), which listed in Australia earlier this year, has a current market cap of $13.1 million; its share price has dropped 22% since the company held its IPO in June.
The window of opportunity for offerings has been open for the past year on Nasdaq, Asian stock exchanges, and in Australia (and things have also been heating up in Europe in recent months). Israeli companies, however, have not been taking advantage of the opportunity on Nasdaq to the same extent as in previous years.
There have been only two large Israeli offerings in 2018: those of Safe-T (Nasdaq: SFET, TASE: SFET), and Sol-Gel Technologies (Nasdaq: SLGL), and two small ones, by Motus GI Holdings (Nasdaq: MOTS), and Entera Bio (Nasdaq: ENTX). It appears that Israeli startups currently prefer smaller stock exchanges, in which they are big fish in a smaller pond. The Australian Securities Exchange has also been attracting European companies less suitable for Nasdaq or the London Stock Exchange in recent years.
At the same time, Stockhead says that 10 Israeli companies that seriously considered registering for trading on the ASX eventually postponed or canceled their plans for an offering there. It appears that the Australian market is willing to accept Israeli companies, but has become more selective about them, especially after several conspicuous failures. On the other hand, a number of Israeli companies that were about to hold IPOs in Australia discontinued the process after the exposure aroused enough interest in them for them to hold a private placement, which was more attractive for them.
Of the 17 Israeli companies listed in Australia, three are in the medical cannabis sector, two in cybersecurity, and the rest in various technology sectors.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2018
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