Shasha Tours cuts planned IPO by 30%

Sasha Tours Photo: PR
Sasha Tours Photo: PR

The weak IPO market persuaded Celltick and ACE to cancel their IPOs.

The recent weakness in the Tel Aviv Stock Exchange (TASE) IPO market has led Shasha Tours to lower the company value for its IPO from NIS 150 million it originally sought to NIS 100-120 million, before money, a 20-35% reduction.

As far as is known, the reduced company value was set following negotiations with several of the concerns interested in the offering. Shasha Tours founder and controlling shareholder Arie Shasha will now have to decide whether to go ahead with the offering at the lower value. Before the IPO, assuming it takes place on schedule next week, the Entropy consultation company is publishing an analysis putting Shasha Tours' value at NIS 175 million.

Celltick and the ACE DIY chain cancel their offerings

The weak IPO market has caused the cancelation of several offerings in recent weeks. The most recent were by mobile phone content and services provider Celltick, which sought to raise $12-15 million at a company value of $90 million before money, and the ACE DIY chain, which also cut the company value for its IPO by 30% to NIS 230 million, but was nevertheless unable to complete it.

Leumi Partners is the leading underwriter for Shasha Tours's IPO. Shasha Tours, founded by Arie Shasha in 1979, has been providing transportation services through a system of passenger vehicles ever since. In addition to Arie Shasha, the controlling shareholder in the company with 51.5% of its capital, each of his sons, Udi and Ephraim, co-CEOs of the company, holds 24.25% of it.

Shasha Tours focuses on transporting students; employees of government ministries, local authorities, institutions and private concerns; and private passengers on designated routes between railway stations and business centers at peak hours. The company has 1,300 regular customers and 115 employees, including over 80 drivers. Shasha makes daily use of 500 vehicles, half of which are registered in its name, and makes an average of 4,000 trips per day all over Israel.

Shasha Tours' revenue grew 24% to NIS 146 million in 2017 after winning tenders and increasing its volume of work. Net profit, however, plunged 62% to NIS 14%, after the company enjoyed large one-time profits in 2016, especially on the sale of its minority holding in public transportation company Kavim and land in Petah Tikva.

Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Sasha Tours Photo: PR
Sasha Tours Photo: PR
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