Shemen Oil and Gas raises NIS 120m in IPO

The IPO brings the amount raised by Shemen Oil to NIS 300 million from private and institutional investors.

Shemen Oil and Gas Explorations Ltd. yesterday raised NIS 120.4 million in its IPO on the Tel Aviv Stock Exchange (TASE), including NIS 9 million from the underwriters. The IPO was held at the minimum price of the tender offer for 199,170 units at NIS 0.264 per unit.

Each unit comprised 2,276 shares and 1,138 warrants in two series, for a total of 453,310,920 and 227,655,460 warrants. 259 orders were placed for 184,348 units for total gross proceeds of NIS 120.4 million.

The IPO brings the amount raised by Shemen Oil to NIS 300 million from private and institutional investors. The latter include Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), Menorah Mivtachim Holdings Ltd. (TASE: MORA), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), and IBI Investment House Ltd. (TASE:IBI).

Last month, Shemen Oil appointed former IDF chief of staff Lt.-Gen. (res.) Gabi Ashkenazi as chairman.

Shemen Oil will try to raise an additional NIS 130 million. The pricing of the offering has not yet been set, but the four underwriters will likely commit to buying NIS 10 million each. If the company cannot raise the balance of NIS 90 million, the underwriters' commitment will not come into effect.

The underwriters, led by Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), have an over-allotment commitment of up to NIS 40 million.

Shemen Oil CEO Yossi Levy said, "The success of today's IPO is a vote of confidence by the capital market and investors' understanding that the company is in advanced stages of drilling the Yam 3 well in the area of its license."

It is important not to confuse Shemen Oil and Gas Explorations with cooking oil manufacturer Shemen Industries Ltd. (TASE;SHMN).

Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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