The latest addition to the wave of Tel Aviv Stock Exchange (TASE) IPOs is Lesico, the Leshman family's infrastructure company. At the end of last week, Lesico wrapped up a NIS 72 million financing round at a company value of NIS 190 million before money, and trading in the company's share is slated to begin in the coming days. Institutions participating in the IPO included Altshuler Shaham Ltd., Halman Aldubi, The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and others.
Another company likely to join the TASE in the near future is communications networks and infrastructure company Telrad Networks, which has already reported raising NIS 80 million in the part of the tender for institutions at a company value of NIS 340 million after money (together with an offer for sale for the same amount by the company's shareholders, headed by Fortissimo Capital).
Lesico and Telrad are expected to increase the number of companies that have joined the TASE this year through an IPO to six, following IPOs by the Ratio Petroleum Energy Ltd. Partnership (TASE:RTPT.L), pharmaceutical distribution compan Novolog (Pharm-Up 1966) Ltd. (TASE:NVLG), real estate company Minrav Projects Ltd. (TASE: MNPR), and Menivim The New REIT Ltd. (TASE:MNRT). Several more equity offerings are planned for the near future, including by unmanned aerial vehicles (UAV) manufacturer Aeronautics and aviation services company Global Knafaim.
NIS 15 million dividend following the IPO
Lesico said that the company would use the proceeds from its IPO "according to the board of directors' decisions… "among other things, in order to increase the company's capital base for growth purposes." Lesico's prospectus states, "The company intends to act soon after the IPO and subject to its completion, to distribute a NIS 15 million dividend to its shareholders."
Lesico is a family business controlled by co-chairmen Jechiel Leshman (who has a 38% stake) and Yehuda Leshman (35.5%). The CEO is Eyal Leshman, Jechiel Leshman's son, who owns 7.5% of the capital, and Ruby Leshman, Yehuda Leshman's son, who owns 10%, is VP franchising and maintenance.
The company's reports show that the chairmen are each entitled to an NIS 83,000 monthly salary, the CEO is entitled to a NIS 96 million monthly salary and a bonus of 3% of the annual profit (NIS 600,000 in 2016), and VP Ruby Leshman is entitled to an NIS 82,000 monthly salary.
Founded in 1969, Lesico operates in several sectors relating to infrastructure through subsidiaries. These include infrastructure (mainly welding railway tracks) and civil engineering (public buildings, round pools made out of pre-stressed concrete), and military infrastructure (fence and obstacles systems). The company is also active in environmental protection (building sewage purification facilities, complex pumping stations, desalinization infrastructure, sludge treatment and odor treatment facilities. It does development and maintenance work on water and sewage systems, pumping stations, and pipes, and high and low-pressure natural gas work, as well as complex process piping for the food, pharmaceutical, and microelectronic sectors.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 29, 2017
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