Ofer Nimrodi succeeded in floating Israel Land Development Company Energy Ltd. on the Tel Aviv Stock Exchange (TASE), raising NIS 107 million at a company value of NIS 830 million. Israel Land Development Company (TASE: ILDC) subsidiary Israel Land Energy owns 46.3% of the offshore Myra and Sarah gas exploration licenses.
During the IPO on Thursday, the media published an internal report by Bank Leumi (TASE: LUMI) advisors against investing in Israel Land Energy, because of the high risk of losing the investment in short order.
"People who had decided to invest in the offering, cancelled their buy orders following these reports," Israel Land Energy CEO Ohad Marani told "Globes" after the IPO. "It was a rollercoaster."
Israel Land Energy received 950 orders, amounting to NIS 100 million in the public tender of the IPO. The underwriters made up the balance of the capital raised. NIS 30 million of the proceeds came from foreign investors, including customers of HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC) and Morgan Stanley (NYSE: MS). Institutional investors invested a similar amount, and the public accounted for the rest.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2010
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