Bank Leumi (TASE: LUMI) is likely to make a NIS 143 profit on the sale of holdings in Mobileye(NYSE: MBLY), which held its IPO last week. The bank, managed by President and CEO Rakefet Russak-Aminoach, announced that its profit would be reported in its third quarter financial reports.
Reports indicate that the bank sold half its holdings in Mobileye, which develops systems that warn of danger on the road during driving. The bank held its stake through Leumi Partners, its investment arm.
Bank Leumi owned 2% of Mobileye before the IPO. As part of the IPO and exercise of options granted to the underwriters, the bank sold 1% of the company's shares for $48 million, leaving it with a 1% stake.
The investment in Mobileye was one of the bank's most successful: it invested only NIS 60 million, while the value of the shares during the IPO was NIS 370 million.
Mobileye raised $890 million in its IPO at the beginning of August at the astonishing company value of $5.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2014
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