Enzymotec Ltd. (Nasdaq: ENZY), a developer of lipid-based products and solutions for the nutritional and healthcare markets, has filed for a secondary offering with the US Securities and Exchange Commission (SEC), just six months after its IPO. The offering is solely an offer to sell by some shareholders, and the company will not issue new shares or receive any proceeds, unless it changes its mind.
Enzymotec shareholders will offer four million shares, which at today's opening price of $25.60, will give the sellers gross proceeds of $100 million. The underwriters Bank of America Merrill Lynch, Jefferies LLC, Wells Fargo Securities LLC, Canaccord Genuity Inc., and Wedbush Securities Inc. have a 30-day option to buy up to an additional 600,000 shares, which could boost the offering by $15.4 million.
Enzyomtec did not disclose which shareholders will participate in the offer to sell. Its largest shareholder is Galam Group Ltd. of Kibbutz Ma'anit, with a 32% stake currently worth $167 million. XT Investments Ltd. (formerly Ofer Hi-Tech) owns 14.2%, currently worth $79 million; and Millennium Material Technologies Fund owns 7.7%, worth $43 million, Enzymotec CEO Dr. Ariel Katz owns 3%. Other shareholders include Mexico's Arancia Industrial SA de CV and GlenRock Israel.
Ezymotec's share price has risen 83% from its IPO price of $14 in September 2013, making it one of the most successful Israeli companies to float on Wall Street. The company raised $71.2 million in its IPO. Its current market cap is $553 million.
In a separate development, Enzymotec today reported strong fourth quarter and full-year revenue and profit growth. Full-year revenue rose 71.6% to $65 million from $37.9 million. GAAP-based net profit rose 138% to $11.4 million ($0.53 per share) in 2013 from $4.8 million in 2012, and non-GAAP net profit rose 173% to $13.8 million ($0.79 per share).
In its full-year guidance for 2014, Enzymotec projects non-GAAP net profit growth of 31-68% to $18-22 million ($0.770.94 per share) on 35-46% revenue growth to $88-95 million (based on the equity method of accounting).
"For fiscal year 2014, we believe our revenue momentum will build sequentially throughout the year and enable us to report another record performance," said Katz. "Looking ahead, we are very optimistic about our long-term growth prospects based on our competitive market position. As our product distribution accelerates in new and existing markets, consumers globally are increasingly using our innovative, proprietary lipid-based products to address their health and wellness needs."
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014