Crop protection provider Adama Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries) has revealed details about its planned NYSE offering in the first half of 2015, as it began meeting investors today.
The company, headed by CEO Chen Lichtenstein, plans to raise $376-423 million at a company value of $2.9 billion. This is higher than the $300 million offering it initially filed for in August. According to reports, the company plans issuing 23.5 million shares after consolidation of capital, and to give underwriters the option to buy an additional 3.525 million shares. The company will use the proceeds to buy several Chinese companies from its parent company ChemChina, and for other general aims.
The company plans to sell shares at $16-18 and trade under the ADAM ticker. Goldman Sachs and Bank of America-Merrill Lynch will act as joint bookrunners.
Following the announcement of the details of the offering, the share prices of Discount Investment Corporation (TASE: DISI), and IDB Development Corp. (TASE: IDBD), which hold stakes in Adama, fell sharply, suggesting that investors had hoped for a better valuation. The offering is at a similar amount to which the company was delisted from the TASE, meaning there will be no capital gains for the Israeli companies.
Yesterday "Globes" revealed that Adama's management is positively considering dual listing on the Tel Aviv Stock Exchange and this was one of the reasons it decided to hold its offering on the NYSE, rather than elsewhere, which facilitates this.
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2014
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