Kibbutz Maanit's Galam Group Ltd. will sell shares in Enzymotec Ltd. (Nasdaq: ENZY), a developer of lipid-based products and solutions for the nutritional and healthcare markets, for $46 million as part of the company's offer for sale. Kibbutz Maanit has 180 members. Galam, Eznymotec's largest shareholder, is selling a quarter of its stake, reducing it from 30.2% to 22.4%
The offer for sale includes four million shares. At Tuesday's closing price of $27.67, the sellers a gross $110 million on the offering, not including the underwriters' over-allotment option of 600,000 shares. The share price has nearly doubled from its IPO price of $14 in September 2013. Since the offer for sale was announced WHEN, Enzymotec's share price has risen 8%, reflecting investors' confidence in the company's future and ability to maintain its growth rate. That said, the company's p/e ratio on projections of a non-GAAP net profit of $20 million for 2014 is 30, a high ratio for an industrial company.
Several Eznymotec executives will also participate in the offer for sale. Vice chairman Yoav Doppelt will sell shares for a gross $1.4 million (not including the over allotment option), leaving a residual stake worth $1.1 million; and president and CEO Dr. Ariel Katz will sell shares for $4.6 million, leaving a residual stake worth $13.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2014
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