After Two Week Delay, Tapuz Gets Greenlight to Finalize Offering

Israel Securities Authority held off authorization after deatails leaked in media, CEO's blog

Two weeks after the Israel Securities Authority delayed authorization of the IPO of Tapuz -following leaks to the press of details of the planned offering - the Marker has learned that the Authority had given its consent to the offering.

Ironically, the green light for Tapuz came on the same day that the Israel Securities Authority delayed authorizing an offering by Leader Capital Markets for the same reason  - leaks to the press.

The delay of the public part of the Tapuz offering came after the institutional round and after the firm had received several warnings. Specifically, Tapuz was notified that information on the offering showed up on a blog posted by its CEO, Guy Eliav, as well as showing up in various print and electronic media.

Tapuz plans to raise between NIS 25 and 30 million, based on a post-money value of NIS 70 to 80 million. Institutional investors have guaranteed 80% of the funds to be raised in the offering, which is being led by Clal Industries and Investments Ltd. and Leader Holdings and Investments.

In the first nine months of 2005, Tapuz earned a profit of about NIS 2.3 million, which is 2.5 times its profit in the similar period in 2004, and 40% higher than the net income of all of 2004.

Gross profit grew from NIS 5.3 million in the first three quarters of 2004 to NIS 7.8 million during the same period in 2005.