The Ticker: Digital Ad Firm Matomy Weighing $25 Million Debt Issue in Tel Aviv

ForeScout shares soar after unexpectedly good third quarter ■ Israel Chemicals to post $40 million gain after completing IDE sale ■ Powerful Teva rally leads Tel Aviv shares to gains

The founding members of ForeScout on March 28, 2016.
Eyal Soag

Digital ad firm Matomy weighing $25 million debt issue in Tel Aviv

The digital advertising company Matomy is weighing a $25 million debt offering on the Tel Aviv Stock Exchange, TheMarker has learned. Neither the timing of the sale nor its structure, either as convertible or ordinary bonds, has been decided yet, but Sagi Niri, who took over as CEO last April, told TheMarker on Sunday: “When we can raise capital and increase of credit sources, we’re glad to do it. With more cash, it’s easier for us to move the company forward.” He said the cash would be sued for current operations as well as to invest in mobile technology, where Matomy, which manages digital ad campaigns with tools that enable clients to measure the results, has been focusing its business. If Matomy goes through with the bond sale, it will be the second Israeli digital-ad company, after Perion Network’s 140 million shekel issue, to take advantage of the booming Israeli bond market. (Shelly Appelberg and Michael Rochvarger)

ForeScout shares soar after unexpectedly good third quarter

Shares of ForeScout soared on Friday after the internet of things security company turned in far better than expected results in its first financial report since going public on the Nasdaq. The company’s adjusted net loss per share was 53 cents, down from a loss of $2.48 a year earlier and the 89 cent loss analysts had forecast. Revenues climbed by nearly a third to $64.4 million. ForeScout achieved that while reducing its sales and marketing expenses relative to revenues from 80% in the first half of the year, before ForeScout’s initial public offering, to just 55% in the third quarter. The company said it expected revenue of $61 million to $63 million in the current quarter, representing year-over-year growth of about 25% and a net loss of between 32 and 39 cents a share. Shares of ForeScout ended 20.4% higher at $27.65, boosting its market cap over the $1 billion mark for the first time ever. (Omri Zerachovitz)

Israel Chemicals to post $40 million gain after completing IDE sale 

Israel Chemicals said on Sunday it would post a $40 million capital gain in the current quarter after it completed the sale of its 50% holding in water desalination firm IDE Technologies for $167 million. The final price was below an initial agreement of $178 million, ICL said. ICL said in June that it reached a deal with a limited partnership led by IDE’s CEO, Avshalom Felber, and including institutional investors from Clal Insurance, the Israel Teachers’ Union educational funds’ group and Ayalon Insurance. The sale, which comes three days after ICL said it reached an agreement to sell $1 billion worth of operations, comes as the company seeks to focus operations are its core business and pay down some $3.3 billion in debt. The remainder of IDE, which has built desalination plants in the United States, Israel, India and China, is controlled by Yitzhak’s Tshuva’s Delek Group.  Shares of Israel Chemicals ended down 0.6% at 14.13 shekels ($4.01). (TheMarker Staff)

Powerful Teva rally leads Tel Aviv shares to gains

Tel Aviv shares ended higher on Sunday, as Teva Pharmaceuticals led a rally in pharma stocks. The benchmark TA-35 index finished 0.6% up at 1,454.36 points, while the TA-125 added 0.3% to 1,320.15, on turnover of 726 million shekels ($206 million). Teva closed up 7.7% to 56.07 shekels after a report the company planned to cut some 10,000 jobs worldwide to help contain costs. The two other big pharma companies on the Tel Aviv Stock Exchange also climbed sharply – Mylan by 5.9% to 135.20 and Perrigo by 4.5% to 300.20. El Al Airlines rose 5.2% to 1.59 and OPC added 5.5% to 15.99. Oil and gas shares were lower, with Delek Drilling skidding 3.35% to 9.82 and Ratio down 2.6% to 2.27. Elbit System fell 2.8% to 461.10. Biocancell rose 2.9% to 1.39 after controlling shareholders made a tender offer to buy the 11% of the company they don’t ready control  for 1.40 a share. (Omri Zerachovitz)