The flotation of Israel Chemicals Ltd. (TASE: ICL) in the US is underway. In the course of it, Israel Corporation (TASE: ILCO) will sell 5% of the company for some $460 million.
Israel Corporation will sell 62 million Israel Chemicals shares, and the underwriters in the flotation will receive an option to sell a further 6.2 million shares. Israel Chemicals' shares are due to begin being traded on the New York Stock Exchange this month under the ticker symbol ICL.
Altogether, according the prospectus published by Israel Chemicals, Israel Corporation will be able to sell up to 72 million Israel Chemicals shares, that is, 5.7% of Israel Chemicals' share capital. Morgan Stanley and Barclays are the lead underwriters for the IPO.
After the sale, Israel Corporation's stake in Israel Chemicals will fall to 47%.
"Israel Corporation sees its holding in Israel Chemicals as a long-term strategic holding, and has no intention of selling more Israel Chemicals shares," Israel Corporation said in its notice to the Tel Aviv Stock Exchange. Israel Chemicals' share price is up about 1.2% on the Tel Aviv Stock exchange this morning.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2014
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