The negative climate on the Tel Aviv Stock Exchange has persuaded PV energy systems integrator Sunday Energy Ltd. to cancel its planned IPO. The company had already cut its planned value for the offering by 25% to NIS 70 million, before money, due to capital market weakness.
The company's underwriters decided to postpone the offering until market conditions improve. The company wants to raise NIS 40 million, even at the price of a major dilution of its controlling shareholders because of a NIS 9 million shareholders' equity deficit and to meet the shareholders' equity threshold of NIS 25 million, after the offering, under TASE regulations.
Sunday Energy operates in the solar energy market but has yet to set up an active project producing a significant amount of electricity. The company reported a loss of NIS 2 million in the first quarter of 2011 following a loss of NIS 3.1 million in all of 2010.
Published by Globes, Israel business news - www.globes-online.com - on June 5, 2011
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