Like many companies, Pointer Telocation Systems Ltd. (Nasdaq:PNTR) has decided to exploit the rise in its share price to raise capital. It did not hold a secondary offering on Nasdaq, but a private placement. On Thursday, the company announced that it had raised $10.4 million from Israeli institutions.
Pointer did not disclose their names, but sources inform ''Globes'' that they were Meitav DS Holdings Ltd. (TASE:MTDS) and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5), which will become parties at interest in the company. Pointer issued 1.1 million shares. Barak Capital Underwriting Ltd. was the underwriter. The stake of Pointer's controlling shareholder, DBSI Investments Ltd., owned by Yossi Ben-Shalom and Barak Dotan, declined slightly, but it still owns more 30% of the company.
Pointer, a provider of vehicle fleet management solutions and roadside services, is listed on the Nasdaq Capital Market. It has a market cap of $55 million. Its share price has risen 240% in the past 12 months, although it has fallen slightly in recent weeks. The placement was made a share price of $9.25, a 12% discount on last Wednesday's closing price. The placement greatly boosts the company's balance sheet, as it had just $3.3 million in cash at the end of 2013.
Pointer, run by CEO David Mahlab, posted $97.9 million revenue in 2013, up 15% over 2012. Its net profit rose from $1.6 million in 2012 to $7.3 million in 2013. The company foresees more than $100 million revenue in 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2014
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