The Ticker: Canada's Urbancorp Looking to Tel Aviv Exchange for Bond Issue

Canadian real estate firm eyes TASE for bond issue; Shares of Okpo Health surge 5.4% on surprisingly strong revenues; Adama reports lower revenues and a net loss due to a stronger dollar; Stocks edge up slightly on the TASE.

Bloomberg

Canadian real estate firm Urbancorp looking to the Tel Aviv exchange for bond issue

After a number of American real estate firms have chosen to issue bonds on the Tel Aviv Stock Exchange, it is now the turn of a company north of the border, Toronto-based Urbancorp, which is seeking to raise about 150 million shekels ($38.3 million) through a new bond series.

Urbancorp, which is expected to obtain a rating for the bonds in the coming weeks, is the developer of condominiums and townhouses, rental property and geothermal systems for residential property in downtown Toronto. The company is in partnership with Israel’s Gazit Globe group’s firm First Capital Realty firm as well as with major Canadian companies Mattamy Homes and CAPREIT. It currently has 12 active projects under development with partners containing 2,633 housing units. The Tel Aviv bond issue is being led by Apax Issuances. (Michael Rochvarger)

Shares of Okpo Health surge 5.4% on surprisingly strong revenues

Shares of Miami-based Opko Health, which is traded on both the New York Stock Exchange and the Tel Aviv exchange, surged in Tel Aviv yesterday after the company reported surprisingly strong third quarter revenues of $143 million, up from just $20 million for the same quarter last year. Company shares jumped 5.4% on the day in trading in Israel, closing at 41.10 shekels ($10.48).

The surge comes after the company’s market value shrank by half from the beginning of June, against the backdrop of a depressed share market in the American pharmaceutical market. Opko’s quarterly revenues were boosted by its acquisition of two firms, Bio-Reference Laboratories and EirGen, and by an advance payment of $295 million from Opko’s human growth hormone joint venture with Pfizer. Net income for the quarter was $128.2 million compared with net loss of $48.7 million for the quarter last year, while net losses for the first nine months of this year were trimmed to $31.6 million compared to $118.7 million for the 2014 period. (Omri Zerachovitz)

Adama reports lower revenues and a net loss due to a stronger dollar

Adama, the agrichemical company controlled by the China National Chemical and the IDB group’s Discount Investment Corp., reported a third quarter net loss of $4.6 million compared to a $24 million net profit for the quarter last year. The loss by Adama, which used to be known as Makhteshim Agan Industries, was the result of the decline of other global currencies against the dollar. Third quarter revenues this year slumped by 9% to $696 million, but in local currency terms, the company showed a 9.5% jump in revenues.

Several days ago, Discount Investment disclosed preliminary information valuing Adama at $2.4 billion for purposes of a transaction that would see it merge with Chinese agrichemical firm Sanonda. (Shelly Appelberg)

Stocks edge up slightly on the TASE

Stocks on the Tel Aviv Stock Exchange were generally nearly unchanged in Tuesday’s trading. The benchmark Tel Aviv-25 index rose by 0.16% to 1,564.71 points while the broader Tel Aviv-100 inched up just 0.02% to 1,354.69, amid expectations of an interest rate hike in the United States. Trading volume was 1.385 billion shekels ($353 million).

Stocks of note included Opko Health, which gained 5.4% on the day on news of better than expected earnings. Jerusalem Economy closed 3% lower at 6.73 shekels, for an 8% loss over two days. Shares in Mannkind Corp., a pharmaceutical firm that is also traded on the Nasdaq exchange, plummeted by 19.1% to 8.39 shekels following the release Monday of its third-quarter financial results.  Shares of pharmaceutical firm Kamada lost 1.1%, closing at 15.29 shekels, on its announcement of lower quarterly revenues and wider operating losses. Reversing direction from the day before, the Tel Bond 20, 40 and 60 indexes rose by between 0.08% and 0.22%. (Shelly Appelberg)