Sources inform ''Globes'' that David Azrieli again succumbed to pressure from underwriters and the market climate, and again cut the price for the IPO of Azrieli Group on the Tel Aviv Stock Exchange (TASE) down to the company's shareholders' equity. The minimum price for the offering is now NIS 83.25 per share, giving no premium to the company's shareholders' equity. The new price is 7.6% less than the initial asking price of NIS 90.10 per share.
The sources believe that there is no reason for the offering of such high-quality goods to fail at the new price. A top underwriter said, "The institutions are rushing in," following the price cut.
At the new price, Azrieli Group will raise a gross NIS 2.52 billion from the offering of 30,314,000 shares in units of ten shares each. The company is offering 25% of its share capital, giving a valuation of NIS 10.08 billion, after money, less than the valuation of NIS 10.8 billion based on the original asking price. In effect, David Azrieli has foregone NIS 700 million in valuation.
When the IPO is completed, Azrieli Group will immediate join the Tel Aviv 25 Index. It will have one of the highest market caps on the index.
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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