TASE agrees dual-listing with Hong Kong, Singapore, Toronto

Tel Aviv Stock Exchange Photo: Eli Yizhar

The agreements may lead to the return of Adama Agricultural Solutions to the TASE.

Just before Israel Securities Authority chairperson Prof. Shmuel Hauser steps down, to be replaced by Anat Guetta, the Securities Authority today announced that its dual-listing arrangements would be expanded. Pending approval by the Ministry of Finance and the Knesset Finance Committee, the arrangements will now include stock exchanges in Hong Kong, Singapore, and Toronto.

The Securities Authority said, "As of today, the Tel Aviv Stock Exchange (TASE) has 60 dual-listed companies traded in New York and London, which have accounted for 40-60% of the TASE's aggregate market cap."

Although the number of foreign companies listed on the new stock exchanges under the dual-listing arrangement or expected to now join the TASE is not significant, the agreement is likely to have an immediate effect on one company that was formerly one of the TASE's anchors - Makhteshim-Agan, which later became Adama Agricultural Solutions.

Adama, which was one of the 25 leading companies on the TASE in 2011, was delisted after being sold in stages to Chinese government company ChemChina. Adama again became a public company last year after being merged into Chinese company Hubei Sanonda, which is listed on the Shenzhen Stock Exchange. The merged company, still under the same Adama management team, headed by CEO Chen Lichtenstein, has A shares priced in Chinese yuans and B shares priced in Hong Kong dollars.

Because of the B shares, Adama has the option of converting the shares to H shares of Chinese companies listed in Hong Kong, thereby in effect registering its shares for trading in Hong Kong. This process is taking place now, and if it is completed, following today's announcement by the Securities Authority, Adama will be able to have its shares also listed for trading on the TASE.

Adama, regarded as the world's largest producers of generic pesticides for agriculture, has a $5.9 billion market cap. Being added to the TASE will make it one of the TASE's leading companies, with its quick inclusion on the Tel Aviv 35 Index likely.

Published by Globes [online], Israel Business News - www.globes-online.com - on January 14, 2018

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

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Tel Aviv Stock Exchange Photo: Eli Yizhar
Tel Aviv Stock Exchange Photo: Eli Yizhar
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