IC Power Planning IPO at Up to $2 Billion Company Valuation

Idan Ofer has just under a 50% stake in Kenon Holdings, which owns the profitable energy subsidiary IC Power.

Yoram Gabison
Yoram Gabison
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Idan Ofer.Credit: Bloomberg
Yoram Gabison
Yoram Gabison

IC Power, a wholly-owned energy subsidiary of Kenon Holdings, plans an initial public offering in the United States late this year or in early 2016 at a company valuation of $1.75 billion to $2 billion. The IPO is to include a share offering by Kenon Holdings itself, a company in which Idan Ofer has just under a 50% stake.

Kenon was spun off at the beginning of the year by the Israel Corporation and is traded on the Tel Aviv exchange and the New York Stock Exchange. IC Power is not only the sole profitable company of Kenon Holdings but also the main reason for Kenon’s $967 million market cap. IC Power’s two main subsidiaries are Inkia Energy, which is building power plants in Latin America, and OPC, which operates the private power plant at Mishor Rotem in Israel’s south. In May of this year, IC Power acquired a license for 60 million shekels ($15.9 million) from Hadera Paper to build and operate an electric power station in Hadera, between Tel Aviv and Haifa.

Kenon also holds 50% of Chinese car maker Qoros, 24% of chip maker TowerJazz and 32% of Zim shipping. Kenon plans to distribute some or all of its shares in TowerJazz as a dividend to shareholders.

IC Power was established in 2007 when the Israel Corporation purchased seven companies for $543 million from the British investment firm Globeleq that were producing electricity in six countries in Latin America. IC Power has consistently increased its production capacity since, particularly in Peru, with little in the way of required additional investment by the Israel Corporation. IC Power’s revenue in the first quarter was $322 million, down from $325 million a year earlier.

With reporting from Reuters.