Kenon plunges after IC Power cancels NYSE IPO

Idan Ofer
Idan Ofer

IC Power, controlled by Idan Ofer, withdrew the $350 million Wall Street offering due to lack of demand.

Kenon Holdings Ltd. (NYSE: KEN; TASE: KEN), controlled by Idan Ofer, plunged over 11% yesterday on Wall Street after its fully owned subsidiary IC Power canceled its planned Nasdaq IPO due to lack of demand. IC Power had wanted to raise $350 million at a company value of $1.27-1.59 billion (after money) at $12-15 per share. The IPO could have probably been completed at $10 per share but the company decided not to proceed.

IC Power CEO Javier Garcia-Burgos said, "In light of current market conditions, we believe that our proposed IPO is not in the best interests of our company and our shareholder at this time, and accordingly, we have decided to withdraw our IPO."

IC Power, which operate power stations in Latin America and Israerl had planned offering 25.9 million shares with the underwriters given an option to buy a further 3.9 million shares. Seven underwriters were deployed for the IPO headed by Bank of America Merrill Lynch, Goldman Sachs and Credit Suisse but they did not succeed in generating the required demand.

Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018