Shikun & Binui Energy is assured of raising NIS 555 million (gross) in its IPO on the Tel Aviv Stock Exchange (TASE) - the biggest IPO on the TASE so far this year. The offering reflects a company valuation of NIS 2.2 billion, before money, or NIS 2.58 billion, after money, in full dilution (after exercising options to convert owners loans to shares received by parent company Shikun & Binui Holdings Ltd. (TASE: SKBN). The valuation is less than half that planned for by Shikun & Binui Energy when it began the public offering process almost two years ago.
Shikun & Binui Energy develops, builds and operates projects for producing energy through photovoltaic and thermo-solar technologies, and natural gas. The company has activities in Israel, Romania, Italy and the US in Texas and California.
Shikun & Binui Energy will begin trading on the TASE at a company valuation of NIS 2.76 billion, after money (or NIS 3.13 billion in full dilution). After the IPO is completed Shikun & Binui will hold a 79.9% stake in the company (82.3% in full dilution), with the remainder held by investors in the publicly traded shares.
The IPO was led by underwriters Barak Capital, which committed to buy 25% of the shares being offered. Market sources say that large institutional investors including insurance companies took part in the IPO.
Published by Globes, Israel business news - en.globes.co.il - on August 1 2022.
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