The valuation for Israel's Holmes Place got a surge Thursday as it headed to its first public offering. Meanwhile, over 20 Israel startups were flagged as good potential offerings.
After getting off to an unpromising start, the initial public offering in Holmes Place ended with a strong show of interest in the public tranche on Thursday, which boosted its final valuation. Investors subscribed for 2.5 times as many shares as were on offer in the public tranche, buying 32 million shekels ($9.1 million) of stock at a 236 million shekel company valuation. That was 6 million more than last week’s institutional tranche, although 30% less than the 350 million shekels insiders hoped before the market balked out the valuation and they were forced to lower it.
All told Holmes Place, an Israeli nationwide chain of fitness centers affiliated with the global chain of the same name, raised 100 million shekels. The global chain, controlled by the Fisher family, sold its 30% stake in the Israeli company and the rest of the proceeds will go into the company itself to finance its expansion.
24 startups rated as good IPO prospects
Twenty-four Israeli startups are good candidates for an initial public offering, according to a study by the IVC Research Center released this week.
At the top of the list are two ride-sharing companies (Gett and Via Transportation), followed by two cybersecurity startups (Skybox Security and CyberReason) and one internet company (Taboola).
IVC bases its IPO-readiness on historical data, which show Israeli tech companies that have conducted successful IPOs on average raised $40 million in their final pre-IPO round and that was the standard for getting on to the list. Of eight Israeli companies that went public in the first nine months of 2017 only two of them listed on the Nasdaq.
“Given that the Nasdaq and the New York Stock Exchange are moody and expensive, Israeli companies are looking for new sources of liquidity,” IVC said.