Saturday, November 28, 2020

Tech Startups Drive 100% Jump in IPOs on Tel Aviv Stock Exchange

Ed.'s note: Ever wonder what makes this possible in Israel as the "startup nation" with all these tech startups? Three things: 1) private equity investment with hardly any oversight; 2) outsourcing American tech jobs to Israel; 3) Chinese investment flow into Israel. Speaking of China? Why are American children in lockdown and schools closed up while in China 195 million Chinese children are blazing away studying face-to-face in public schools?
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Source: Bloomberg

November 24, 2020 | Ivan Levingston

(Bloomberg) -- Israeli startups are taking the Tel Aviv Stock Exchange by storm this year, pushing initial public offerings to a three-year high and marking a shift away from homegrown technology companies opting to list abroad.

Through October, 14 companies had conducted IPOs worth $650 million in Tel Aviv this year, with eight of those tech or innovation-focused startups, according to data from the exchange. That's already double the total number of listings in 2019 and the most since 2017, with more tech offerings in the pipeline.  

"We're considered all over the world as a startup nation, but essentially the Israeli exchange didn't participate in the new economy and high tech, and 2020 is the year of the breakthrough," said Hani Shitrit Bach, the TASE's head of listings.

Israel's main trading venue has struggled since a 2010 decision by index compiler MSCI Inc. to upgrade the country from emerging market status, which led passive investors to withdraw funds given the country’s lower weighting in the developed benchmark. 

For years, Israel's most promising technology companies have forsaken their local market, opting to list instead only in New York or, less often, London. Mobileye NV raised $890 million in the U.S. in 2014 and the company was bought by Intel Corp. four years later. Wix.com Ltd., the maker of online tools to create websites, went public on Nasdaq in 2013 and now has a $14.3 billion market value.

Some companies are still pursuing that route. Cybersecurity startup BrandShield Ltd. will start trading on the London Stock Exchange's AIM segment next month. And remote-working firm Monday.com is eyeing a listing in New York at a possible $4 billion value, Israeli business newspaper Calcalist reported in October.

Please go to Bloomberg to read the entire article.
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