ReWalk Plans to Raise $50m on Wall Street

Matomy shares soar, Alon USA rallies and Israel Corporation reports narrower quarter losses.

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Errol Samuels, 22, from Queens, New York, who lost the use of his legs in 2012 after a roof collapsed onto him at a house party, walks with a ReWalk electric powered exoskeletal suit, March 2014.
Errol Samuels, 22, from Queens, New York, who lost the use of his legs in 2012 after a roof collapsed onto him at a house party, walks with a ReWalk electric powered exoskeletal suit, March 2014. Credit: Reuters

ReWalk plans to raise $50 million on Wall Street

ReWalk Robotics, a maker of exoskeletons that enable paraplegics to walk, said late Tuesday that it plans to raise $50 million on Wall Street in an offering of 3.4 million shares at a price range of $14 to $16 each. At the midpoint of the price range, the initial public offering would value the company at $188 million, but the pricing was below market expectations of about $58 million, which would have valued ReWalk at $232 million. Founded in 2001, the company has $2 million in sales in the 12 months to June 30. ReWalk, a set of motorized leg braces that provide movements to the knees, thighs and ankles, was approved by Europe regulators at the end of 2012 and by the U.S. Food and Drug Administration in June. As of August 1, the Yokneam-based company said it had sold 81 systems. Jeffreys and Barclays Capital are managing the offering.

Matomy quadrupled first-half profit

Matomy Group shares jumped close to 7% on Wednesday after the digital advertising firm said that first-half net profit quadrupled. Boosted by increased mobile and video activity, and a gain from an acquisition, net jumped to $12.6 million from $3.2 million a year earlier as revenue grew 11% to $107.6 million. The report comes less than six weeks after Matomy successfully went public in a London listing, after a failed attempt in March when it failed to raise enough money from European Union investors following a poor performance of high-profile Internet stocks. The company decided to try again when the London Stock Exchange made its investment requirements more accommodating. CEO Ofer Druker said the company was allocating more resources to its mobile and video divisions, and improving media buying.

Alon USA rallies on dividend increase, bullish outlook

Alon USA, the American refining and energy retail unit of David Weissman’s closely held Alon Group, has seen its shares surge more than 30% since the start of the month, erasing all its losses from the first seven months of the year. Behind the rally is the company’s decision to increase its quarterly dividend to 10 cents a share from 6 cents, and upgrades from three equity analysts that suggest the market is becoming more optimistic about Alon USA’s earnings for the coming quarter and year. All told, says Zacks Equity Research, earnings estimates have increased, to 39 cents today from 30 cents a share 30 days ago, a move of 30% for the third quarter. Zacks says the consensus estimate for full-year 2014 earnings has risen in the past month to 58 cents a share, from 46 cents. Alon USA shares rose 0.6% on Wednesday to $16.62 in early New York trading, valuing the company at $1.12 billion.

Israel Corporation loss narrowed in second quarter

Israel Corporation, one of Israel’s largest holding companies, reported a narrower quarterly loss on Wednesday due to improvements in its oil refinery and shipping units. Its net loss narrowed to $20 million in the second quarter, from $89 million the same time in 2013, although quarterly revenue slipped to $2.8 billion from $3 billion. It was Israel Corp.’s first quarterly report since a $3.4 billion debt-restructuring at shipping company Zim, whose loss narrowed to $69 million from $97 million. But Qoros, a joint automaking venture between Israel Corporation and China’s Chery Automobile Company, widened its quarterly loss to $78 million, from $40 million a year earlier, as it expanded operations to over 40 dealerships in China and launched its second model. Israel Chemicals, the conglomerate’s most lucrative holding, saw profit drop in the second quarter to $67 million from $316 million, as it paid $135 million from a royalty agreement with the government. Israel Corporation shares rose 3.4% to close at 2,018 shekels ($566.06) in Tel Aviv.

Migdal boosts second-quarter profit despite set-aside

Migdal Insurance turned in a 95 million-shekel ($26.7 million) net profit for the second quarter – a 55% increase from the same time last year, even after setting aside 155 million shekels to cover insurance plans with guaranteed returns. With interest rates so low, all three of Israel’s big insurers had to set aside money to cover such policies, but Migdal was the only one to emerge with an increase in quarterly profit. Migdal attributed the increase to higher profit in its capital markets unit, as well as gains from investments backing its general and health insurance portfolios. In addition, management fees for life insurance policies soared to 42 million shekels before tax, from just 12 million shekels a year earlier. Migdal reports that sales of new life insurance and pension policies rose in the second quarter after declining through all of 2013 and in the first quarter of this year. Shares of Migdal closed up 3.6% to 5.49 shekels in Tel Aviv.

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