Yochananof expands IPO to NIS 500m

Eitan Yochananof

Demand for the supermarket chain's shares in the public stage of the offering totaled NIS 440 million, of which only 10% was filled.

The final results of food retail chain Yochananof's IPO, published late last week, show great success. Yochananof announced that demand for its shares had been high in the public stage of the offering, following strong demand in the stage for investment institutions. This demand enabled Yochananof to increase the size of its IPO from the planned NIS 460 million, which had been guaranteed in the stage for institutions, to NIS 500 million.

The company's announcement states that that in the public stage, which took place through a uniform offer, orders totaled NIS 440 million. The company filled only NIS 38 million of these orders - less than 10%. The stage for institutions was through a non-uniform offer and book building in handling orders. Demand in the offering reached NIS 1.5 billion, enabling the company to raise all of the money that it sought.

The amount raised by the company is equivalent to a NIS 2.35 billion valuation, after money. When trading begins in its stock, Yochananof will be Israel's third largest retail food chain on teh stock market after Shufersal (NIS 5.7 billion market cap) and Rami Levy (NIS 2.8 billion).

Yochananof's successful IPO also means handsome proceeds for the firms that worked on it, headed by Orion Underwriting and Issuances, managed by Erez Goldschmidt, which led the offering. Underwriting, management, distribution, and coordination fees and payments in the IPO will total NIS 10 million, in addition to NIS 1.6 million in miscellaneous expenditures, leaving Yochananof with NIS 488 million in proceeds.

Published by Globes, Israel business news - en.globes.co.il - on November 24, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Eitan Yochananof
Eitan Yochananof
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