The largest initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE) so far this year, Shikun & Binui Energy is guaranteed to raise NIS 555 million (gross) in its IPO. After executing options to convert owner loans to shares obtained by parent business Shikun & Binui Holdings Ltd., the offering indicates a corporate valuation of NIS 2.2 billion before money or NIS 2.58 billion after money, in complete dilution (TASE: SKBN). The valuation is less than half of what Shikun & Binui Energy anticipated when it started the IPO process over two years ago.
Photovoltaic, thermo-solar, and natural gas energy projects are developed, constructed, and run by Shikun & Binui Energy. The business operates in Israel, Romania, Italy, Texas, and California in the United States.
Upon going public on the TASE, Shikun & Binui Energy will have a business value of NIS 2.76 billion (or NIS 3.13 billion in full dilution). Shikun & Binui will hold 79.9% of the company after the IPO is over (82.3 percent with full dilution), with the remaining shares being owned by investors in the publicly listed shares.
Barak Capital, the IPO’s lead underwriter, agreed to purchase 25% of the shares being offered. Large institutional investors, including insurance companies, reportedly participated in the IPO, according to market sources.