My Size Takes Step Toward U.S. Listing

The Ticker: ICL shutting flame-retardant production line; Bank shares fall on new lending rules; TA-25 loses it early gains to end lower.

Wall StreetCredit: Reuters

My Size takes step toward U.S. listing

My Size, whose mobile app lets users size themselves for apparel before making online purchases, said Sunday it was exploring raising $10 million in an initial public offering on Wall Street. The company, whose shares have risen 65% since it began trading on the Tel Aviv Stock Exchange in the middle of last year, said it has filed a Form 10 application with the U.S. Securities and Exchange Commission but said the size and structure of the offering have yet to be decided. The Form 10 application presents a company’s financial statements using U.S. accounting standards, allowing to file an application to register shares for trading 60 days after the form has been filed. Meanwhile, My Size said it has signed an agreement for a 7.7 million-shekel ($2 million) loan that automatically converts to equity at $3.50 a share, a 50% premium over its current TASE price. My Size shares ended up 0.3% to close at 8.92 shekels. (Dror Reich)

ICL shutting flame-retardant production line

Israel Chemicals said Sunday it would close a line that produces a flame-retardant product called FR-1210, saying a strike had led customers to choose alternative suppliers. “The inability to deliver products to customers is now hurting the company’s credibility and its relationship with customers,” said Anat Tal Ktalav, deputy CEO at ICL’s industrial products division. ICL, which also cited competition from Chinese producers, said that out of 12 workers to be laid off as a result, three will be moved to other facilities and nine let go. Workers have been striking since February at two ICL plants to protest plans to cut 280 jobs at its Bromine Compounds and Dead Sea Works, which together employ 2,150. ICL said that if the strike continues it will be forced to close additional operations. ICL shares closed up 0.2% at 27.10 shekels ($6.97). (TheMarker)

Bank shares fall on new lending rules

Bank shares fell sharply Sunday after the Bank of Israel released tougher rules on lending to big corporate borrowers. The rules require banks to get information on loans taken by a company’s controlling shareholders, a move aimed at preventing a situation as happened with Nochi Dankner, who allegedly borrowed heavily from Bank Leumi for his Ganden Holdings based on a balance sheet that had been inflated by taking loans from Bank Leumi. Lenders will also have to file quarterly reports with the Bank of Israel on debt bailouts they have participated in and face limits on the scope of leveraged loans in their portfolio. Bank Hapoalim shares dropped 1.8% to 19 shekels and Bank Leumi fell 2.2% to 14.70. (Sivan Aizescu)

Orbotech earnings boosted by STPS

Orbotech, the maker of equipment for manufacturing electronics, said over the weekend that first-quarter profit jumped more than 150% after its acquired Britain’s SPTS. The company said net profit, not counting one-time items and the cost of stock-based compensation, reached $20.8 million, or 48 cents a share, in the three months, up from $8.2 million, or 19 cents, a year earlier while its gross margin widened to 45% from 43.6%. Revenue grew to $184.8 million, with $61.5 million coming from SPTS, which it bought last July, compared with $104.8 million a year earlier, the company said. Orbotech said it expected revenues for the second quarter of 2015 to be between $185 million and $193 million, and its gross margin approximately 45%. Orbotech shares closed up 0.3% to $18 in New York on Friday. (Dror Reich)

TA-25 loses it early gains to end lower

The TA-25 index shed its early gains Sunday to end lower, led by bank shares. The benchmark index fell 0.6% to end at 1,634.32 points, while the TA-100 lost 0.45% to 1,423.70, on turnover of 556.4 million shekels ($143.2 million). Strauss Group led TA-100 shares lower, falling 3.3% to 66.47 shekels. Teva Pharmaceuticals, buoyed by better-than-expected first-quarter earnings Thursday, rose 2.5% to 242 shekels. The government’s shekel bond due in 2024 fell 0.26% to raise its yield to 1.54%, while its inflation-indexed Galil bond dropped 0.38% to a yield of minus-0.22%. (Omri Zerachovitz)