Protalix Biotherapeutics Inc. (AMEX:PLX) and its controlling shareholders companies Biocell Ltd. (TASE: BCEL) and Marathon Venture Capital Fund (TASE: MARA) have not yet announced the results of Protalix’s secondary offering, which was due to close yesterday. The companies have apparently decided to give it another chance.
Sources close to Protalix said that the offering was about to be closed at a company value of $600-700 million when a jump in the share price towards the market close, after a sharp fall during the session, caused it to reconsider.
Protalix has provided no details, and declined to comment on the report.
Protalix is holding the secondary offering after merging with a stock market shell in December 2006. The Israeli capital market is eagerly waiting for the price of the offering, as it will affect the price of Biocell, which owns an undiluted 22% of Protalix and is Biocell’s sole holding. The price of the offering will also affect the price of Marathon, which owns 10% of Protalix.
Prior to the launch of the offering on October 7, market sources predicted that Protalix would hold it at a company value of between $800 million and $1 billion, and the prediction appears to have been fulfilled. Yesterday, sources said that the company had obtained a slightly lower valuation, but nothing has yet been announced.
On October 7, Protalix announced that it was offering 3.7 million shares in an effort to raise $130 million gross, and that it might increase the offering in order to reach its target. The company added that shareholders were offering an additional 1.2 million shares in offer to sell. UBS Securities LLC and CIBC World Markets Corp. are the underwriters.
Published by Globes [online], Israel business news - www.globes.co.il - on October 24, 2007
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