The Ticker: Internet of Things Startup ForeScout Slates $100 Million IPO on Wall Street

S&P Maalot slashes debt rating of Kardan NV three notches to CCC | Tel Aviv shares end higher on back on insurance gains

Pedestrians walk on Wall Street near the New York Stock Exchange in New York, U.S., September 22, 2017.
Michael Nagle/Bloomberg

Internet of things startup ForeScout slates $100 million IPO on Wall Street

After a long dry period for Israeli initial public offerings, ForeScout Technologies, an internet of things security company, said on Monday it planned to go public in a $100 million offering. In a filing with the U.S. Securities and Exchange Commission, the Israeli-U.S. company said it hadn’t yet decided on the number of shares to be offered or the price range for the shares, which will be listed on the Nasdaq under the ticker symbol FSCT, but it is regarded already as a unicorn, meaning it is valued at over $1 billion. 

ForeScout was formed in 2000 by Israelis Prof. Hezy Yeshurun, Dror Comay and Oded Comay. It headquarters is in San Jose, California, and its CEO is the former McAfee boss Michael DeCesare, but its research and development center, which employs 170 people, is in Ramat Hahayal in Tel Aviv. The company posted 2016 revenues of $167 million, up 32% from the year before but heavy marketing costs left it with a $71 million loss. First-half 2017 revenues were $90 milion, with a loss of $46 million. (Eliran Rubin and Omri Zerachovitz)

S&P Maalot slashes debt rating of Kardan NV three notches to CCC

Kardan NV, the real estate and water-infrastructure company, saw its debt rating lowered by a giant three notches by S&P Maalot on Tuesday amid concerns about its ability to pay debt coming due in Feburary. The rating agency cut Kardan’s rating to CCC, which is just three notches above insolvency, from B and said its outlook was negative. At issue, said analysts Tamar Stein and Sivan Mesilati is 115 million euros ($135 million) in principal and interest due bondholders in February against just 2 million euros in cash on the company’s books. With a loan to value ratio of 80%, Kardan is highly leveraged and its assets are privately held, which gives it little flexibility in terms of raising cash, the analysts warned. “The longer the company delays in selling assets to meet its liabilities the more creditors are exposed to the risk of its failing to sell them in time,” the analysts said. Shares of Kardan ended down 2% at 92 agorot (26 cents). (Yoram Gabison)

Tel Aviv shares end higher on back on insurance gains

Tel Aviv shares ended a Sukkot holiday-shortened trading week on Tuesday with gentle rise led by insurance stocks. TheTA-35 and TA-125 indices both ended the day up 0.2% at 1,432.90 and 1,305.47 points, respectively, on turnover of 1.34 billion shekels ($380 million). Insurance gains were led by a 3.3% rise for Migdal to 3.78 shekels, with Phoenix and Harel both following with 3.2% gains to 16.95 and 22.21, respectively. Frutarom turned 2% higher after a nearly non-stop strong of declines over the last two week. But Nova dropped 5% to 99.99 after four days of big gains. Redhill slumped 12% to 3.34 even though the company termed the Phase II trials of its Bekinda treatment for irritable bowel syndrome. Elbit Systems rose 1.1% to 525.20 after its U.S. unit was awarded a $31.5 million additional component contract by the Defense Logistics Agency Land and Maritime. Trading resumes next Sunday with reduced hours for the intermediate days of Sukkot. 
(Shelly Appelberg)