Business in Brief: Overseas Commerce Plans IPO to Trade in Tel Aviv

Teva gets European approval for drug to treat aggressive form of leukemia | Four U.S. developers eye combined NIS 1.7 billion in bond issues | Tel Aviv ends higher, led by insurance stocks

A large digital ticker shows financial information to pedestrians outside the entrance to the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Aug. 4, 2016.
Entrance to the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel. Credit: Rina Castelnuovo, Bloomberg

Overseas Commerce plans IPO to trade in Tel Aviv

In what has become an increasingly rare event, an Israeli company intends to raise funds in an initial public offering with the intent of trading on the Tel Aviv Stock Exchange. Overseas Commerce Ltd., a maritime logistics company controlled by the FIMI Opportunity Funds private equity fund, plans an offering of shares, warrants and bonds, according to a draft prospectus filed on Monday. Although the final structure of the IPO hasn’t been fixed, sources at FIMI said it was likely that shareholders, which in addition to FIMI include Zim Integrated Shipping Services and Gad Zeevi, would sell a 45% stake in the company at a company valuation of 450 million shekels ($116.3 million) and offer warrants to buy another 11% to 12%. Overseas will also sell 100 million shekels in bonds, proceeds from which would go toward retiring debt and expansion. The company has spent 160 million shekels in the past three years in order to retain its domination of the local markets and recently began expanding abroad, building facilities in Ghana. (Yoram Gabison)

Teva gets European approval for drug to treat aggressive form of leukemia

Teva Pharmaceuticals said Monday it had won European Commission approval for the use of its Trisenox as a treatment for a rare but deadly form of leukemia that can kill within hours or days if left untreated. Acute promyelocytic leukemia patients in Europe will now be able to use Trisenox as an alternative to chemotherapy. Teva said that in combination with retinoic acid, Trisenox users have shown a 99% overall survival rate with almost no relapses after more than four years. In Europe, 1,500 to 2,000 people are diagnosed every year with APL, which can cause uncontrollable bleeding that leads rapidly to death unless treated. “This decision is a very positive endorsement by the European Commission, as it was made based solely on published academic research and studies,” said Francesco Lo-Coco, professor of hematology at the University of Rome Tor Vergata. Teva shares rose 0.5% to 149.80 shekels ($38.70). (Yoram Gabison)

Four U.S. developers eye combined NIS 1.7 billion in bond issues

Four U.S. real-estate developers will be tapping the Tel Aviv market in the coming weeks with debt issues totaling 1.3 billion shekels ($340 million). The four are in a race against time as bond yields rise in the wake of Donald Trump’s election victory two weeks ago amid concerns his policies will spark inflation. Southern Properties Capital, which is based in Dallas and holds a $1.7 billion portfolio of offices and multifamily homes, issued a prospectus on Sunday to raise $100 million. Meanwhile, Namco Reality is conducting a roadshow for a $70 million bond sale. Cornerstone Group and Wharton Properties have both filed draft prospectuses, although market sources said it was unlikely Wharton would go to market before the end of 2016. Cornerstone operates in southern Florida and has a $1.2 billion portfolio, mostly of affordable housing. Its chairman, Jorge Lopez, will be visiting Israel for a roadshow next month. (Eran Azran)

Tel Aviv ends higher, led by insurance stocks

Tel Aviv shares ended higher Monday, with insurance shares pacing the gains. The blue-chip TA-25 index finished up 0.25% at 1,441.25 points, while the TA-100 rose 0.3% to 1,261.67, on turnover of 1.17 billion shekels ($300 million). IDI Insurance led insurers higher on a 2.5% gain to 202.30 shekels. Other gainers included Israel Chemicals, which rose 1.4% to 14.70. But Gazit Globe dropped 2.4% to 33.37 and Frutarom loss 1.1% to 211. Africa Israel Investments plunged 28.3% to 65 agorot after bondholders rejected an offer from the Saidoff brothers to buy the financially troubled property company and shareholders realized that any bailout will leave them with nothing. Volume leader Elbit Systems edged down 0.25% to 400 shekels. Delek Drilling rose 0.3% to 13.28. CEO Yossi Abu said Monday that exports of natural gas from the Tamar field to Jordan would begin next month. (Omri Zerachovitz)

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