Sunday Energy Ltd. plans to raise NIS 40 million in an IPO on the Tel Aviv Stock Exchange (TASE) at a company value of NIS 160 million, according to a draft prospectus filed today.
Sunday Power builds solar energy facilities. The company is the process of obtaining licenses for projects for the generation of 188 megawatts of electricity. The set-up cost is NIS 2.4 billion. The company has already built six projects, generating 29 megawatts, and its current revenue from electricity sales is NIS 2-2.5 million a year.
Despite its growth, Sunday Energy is not yet profitable; it lost NIS 3.1 million in 2010, after losing NIS 5.4 million in 2009. However, revenue rose 167% to NIS 20.8 million in 2010. The company's current liabilities total NIS 21.6 million and it has a shareholders' equity deficit of NIS 7 million.
Sunday Energy chairman and CEO Yaakov Dinar founded the company in April 2008, and owns 70% of it. Last year, Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) announced that it would invest NIS 100 million in the company's projects and acquired a 10% stake in it.
Sunday Energy also collaborates with geothermal energy company Ormat Industries Ltd. (TASE: ORMT), which is helping finance the construction of solar energy facilities for the generation of 123 megawatts at a cost of up to NIS 1.5 billion.
Sunday Energy has 54 employees.
In March, the company decided its dividend policy. It will distribute at least 30% of profits. Dinar made a salary of NIS 622,000 in 2010.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2011
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