Last week, Doral Renewable Energy Resources Group published a prospectus for an initial public offering of shares on the Tel Aviv Stock Exchange. "Globes" first reported the planned offering in February this year.
As far as is known, Doral seeks to make the offering at a valuation of NIS 500-550 million before money, and intends to raise up to NIS 150 million. The offering is managed by Leader Underwriters.
Doral deals in the initiation, development, planning, licensing, financing, construction, maintenance, management and operation of renewable energy power plants in Israel and the US. Its main current activity is in photo-voltaic solar power systems.
The company mainly operates in the rural sector, on kibbutzim, moshavim and other settlements, on whose land it constructs solar projects. Last year, it began activity in the US with a partner.
Doral Renewable Energy Resources Group, which examined the possibility of an IPO last year but did not go ahead with it, was founded in 1997 by Alon Kessel and Dori Davidovitz. Over the years, several partners have joined them, investing at ever increasing valuations.
Among them are kibbutzim Yotvata and Yakum, and Jewish Colonial Trust Ltd., which received an option to purchase an additional 3% in Doral at a valuation of NIS 385 million. The draft prospectus reveals that Doral has earmarked part of the proceeds of the offering for a payment to Jewish Colonial Trust, while the rest will be for financing the company's business activity.
An amendment to the agreement between Jewish Colonial Trust and Doral made in anticipation of the offering states that if Doral makes an IPO by the end of 2023 at a valuation higher than NIS 385 million before money, it will pay Jewish Colonial Trust the amount that it would have been entitled to receive had it exercised the option and sold the shares received. The payment will be calculated on the basis of Doral's valuation.
In 2019, Droal's revenue dropped by nearly 50% to just over NIS 8 million, mainly because of "a decline in the scope of services provided and equipment supplied" after projects were completed. The company made an operating loss last year and a net loss of nearly NIS 3 million, after posting a profit of NIS 2 million in 2018. The company's shareholders' equity grew 31% to NIS 53 million.
Doral's current activity comprises a total output of 69 megawatt, of which its share is about half (34 megawatt), in addition to projects under construction or at earlier stages amounting to 2,750 megawatts in total, fo which its hsare is 1,380 megawatts.
Doral has signed a collaboration agreement for the construction of renewable energy systems in Italy with an output of 300 megawatts, and it is also involved in projects for producing power using bio-gas systems, wind turbines, and natural gas.
Published by Globes, Israel business news - en.globes.co.il - on May 24, 2020
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