Against a background of the expected cancellation of dozens of offerings planned on the basis of 2009 financials, because of the market's decline, one offering apparently remains on the agenda, that of Azrieli Group. The controlling shareholder in the group, David Azrieli, has acceded to the demands of the underwriters to reduce the company's valuation by several hundreds of millions of shekels, and has even agreed to postpone the institutional tender from tomorrow (Thursday) to this Monday.
If the positive trend that returned to the markets today continues, Azrieli Group will raise some NIS 2.5 billion at a company valuation of NIS 10.5 billion after the money, in what will be the largest equity offering ever on the Tel Aviv Stock Exchange. The underwriters, headed by Clal Finance Underwriting, Poalim IBI Underwriting and Issuing, Leumi Partners Underwriters, and Leader Underwriters, and the consultants to the offering, Giza, will share commissions of NIS 20-34 million.
David Azrieli said today in a press release, "I am committed to the offering and see it as a one-time opportunity to share with the public and investors one of the greatest successes of the Israeli economy. I believe that the offering is good for the Israeli capital market and also for the economy, since it will make it possible to redouble the momentum of activity of our great group."
Azrieli holds 40% of the shares in the group, and each of his four children 15%. A few days ago, the company revised its dividend policy from 25% to 35% of annual profits.
The group's first quarter financials released this morning show that its net operating income rose 18% to NIS 213 million, while FFO (funds from operations) rose 17% to NIS 159 million. Net profit was NIS 141 million, 40% more than in the first quarter of 2009.
Azrieli Group has eleven shopping malls all over Israel, among them the Azrieli Mall in Tel Aviv.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010