Business in Brief

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MediWound shares priced low, but post a big first-day gain

MediWound, the Clal Biotechnology unit developing treatments for severe burns and other hard-to-heal wounds, raised $70 million on Thursday by offering five million shares at $14, valuing the company at $285 million after the money. The price was at the low end of the $14 to $16 range the company had expected, but sources close to the offering said they were satisfied by the quality of investors and the fact that orders exceeded $1 billion. Moreover, in late afternoon trading on the NASDAQ, the shares had reached $16.84. Clal Biotechnology’s stake falls to 48% after the offering from 63%. Credit Suisse, Jefferies and BMO Capital Markets, which led the offering, have a 30-day option to sell an additional 750,000 shares, which could increase the proceeds by 15%. (Yoram Gabison)

Delek Group sells more shares in U.S. unit

Yizthak Tshuva’s Delek Group sold another three million shares of its Delek USA unit on Wednesday for $91 million as the holding company continues to build up liquidity it needs to repay debt to banks and bondholders. Delek sold the shares equal to a 5% stake in the U.S. refiner and retailer of energy, at $30.33 each, reducing its stake to 25.4%. Delek Group, which has been selling shares in the unit since August 2012 to raise a total of 3 billion shekels ($867 million), said the sale would not have a material impact on its first-quarter results. Shares of Delek Group fell 0.8% to a close of 1,294 shekels ($370.70) in Tel Aviv on Thursday. (Michael Rochvarger)

Tel Aviv shares pull back after week marked by record highs

The Tel Aviv Stock Exchange’s benchmark indices ended Thursday lower after a week where they set record highs. The TA-25 finished down 0.2% to 1,383.16 points, but was still up 0.7% for the week and is now ahead 4% for the year. The TA-100 dropped 0.3% to end at 1,278,54, a gain of 0.9% for the week and 5.9% year to date. Turnover was a brisk 1.55 billion shekels (446 million). Israel Discount Bank ended down 2.9% at 6.30 shekels amid speculation that a shelf filing for the bank signaled plans to sell shares to boost its capital to meet tougher regulations ahead. TowerJazz gained 5.4% to close at 30.99 shekels after it swapped $55 million in short-term bonds for longer-term debt. Mazor Robotics added 3.9% to 42.80m shekels after winning another order for its surgical systems. B Communications edged 0.04% lower to 50.50 shekels even after Teddy Sagi offloaded 85 million shekels in shares on Thursday. In the fixed income market, the price for the government’s 10-year shekel bond dropped 0.37% and 0.39% for the equivalent inflation-linked bond. (Dror Reich)

Yitzhak Tshuva, owner of the Delek Group. Credit: Emil Salman

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