The company missed its NIS 200 million funding target.
Shemen Oil and Gas Exploration Ltd has raised NIS 176 million in a private placement, missing its NIS 200 million target. The company owns the Shemen (formerly Med Ashdod) offshore license.
Shemen offered 9% of its shares at a company value of NIS 1.8 billion. The company now plans to hold an IPO on the Tel Aviv Stock Exchange (TASE) by late August. Shemen promised private investors a 20% discount on the minimum price for the IPO, if that price is less than 120% of the price in the private placement. This is basically a guarantee to the private investors of a minimum 20% profit on their investment until the IPO.
Chaim Lebovits's and ACC International Holdings Ltd. owns 50% of Shemen, Israel Financial Levers Ltd. (TASE:LVR) owns 21.55%, and Financial Levers controlling shareholders Jackie Ben-Zaken and Abraham Nanikashvilli jointly own 21.25% in equal shares.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2011
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