The IPO will be at a valuation of NIS 70 million, before money, instead of the planned NIS 120 million.
The weakness in the markets has hit the forthcoming IPO of solar energy company Sunday Energy. "Globes" has learned that Sunday has been forced to cut its valuation for the IPO by about 40%, to NIS 70 million, before money, from a planned NIS 120 million.
Sunday Energy, controlled by Kobi Dinar, seeks to raise NIS 40 million in the offering, even at the cost of substantially diluting the controlling shareholder. The reason is that the company has a shareholders' equity deficit of NIS 9 million, while the minimum amount of capital according to stock exchange rules is NIS 25 million.
The offering is being led by Tzahi Sultan's Clal Finance Underwriting. The offering prospectus reveals that Sultan is also a major customer of Sunday Energy, through private company Soleg, owned by Sultan and former Avgol Nonwoven Industries Ltd. (TASE:AVGL) CEO Nir Peleg.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2011
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