El-Ad Canada drops 10% in thin trade on first day
By Sharon ShpurerEl-Ad Canada faced a frosty reception on its first day of trading on the Tel Aviv Stock Exchange yesterday. The real estate company's IPO priced it at almost NIS 2 billion, but turnover totaled only NIS 131,000 - rather low for a company of that size.
El-Ad's package of shares and options traded on the TASE reflected a drop of 10%, but it's hard to reach any real conclusions about investors' views due to the very low turnover.
El-Ad completed its IPO last week only after controlling owner Yitzhak Tshuva agreed to a 10% discount for the issue. Tshuva also had to call on a number of friends to buy part of the offering. Among those who pitched in were Tshuva's son Elad, after who he named the firm, and Gil Agmon, the CEO of Delek Automotive, also controlled by Tshuva.
The institutional phase of the IPO also drew light interest, with four of the 12 participants linked to Tshuva and his Delek Group or the underwriters, led by Clal Finance and Meitav.
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