The Ticker: Tel Aviv Exchange’s IPO Wave Has Been a Loser for Investors, Survey Finds

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A student group exits after visiting the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Aug. 4, 2016
A student group exits after visiting the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Aug. 4, 2016Credit: Rina Castelnuovo/Bloomberg

Tel Aviv exchange’s IPO wave has been a loser for investors, Marker survey finds

The wave of initial public offerings for trading on the Tel Aviv Stock Exchange over the last 18 months has been dubbed “the bourse renaissance.” But a survey by TheMarker of the 23 offerings since the start of 2017 shows that an investor putting an equal sum in each company that went public would have lost 9.1%. Only seven have shown a positive return since they began trading and only nine outperformed their respective industry indexes. The top performer was OPC Energy, whose share price has climbed 49% since its August 2017 IPO. Next was Fattal Hotels, which gained 24% in the three months since it was listed. The worst performance came from Aeronautics, a drone maker under police investigation whose share price has tumbled 56% since its IPO a year ago. Telrad Networks has lost 49% since May 2017, mainly due to regulatory issues for its telecoms products and services. (Guy Erez)

Exalenz files confidential prospectus for Wall Street share offering

Exalenz Bioscience, whose devices can diagnose and monitor gastrointestinal and liver conditions using breath analysis, has filed confidential prospectus for a share offering on Wall Street. Sources said the company would seek to raise between $40 million and $50 million by issuing new shares in order to expand marketing in Europe and launch in China, where it is awaiting final approval for its BreathID Hp device. The company, which is 77%-owned by health care entrepreneur Mori Arkin and is traded on the Tel Aviv Stock Exchange, ran up $81 million in losses until it won its first U.S. Food and Drug Administration approval in November 2016 for BreathID Hp, which detects H. pylori, the bacterium that causes stomach ulcer. Last year Exalenz ‘s revenue jumped 127% to $9.5 million while its net loss narrowed to $5.4 million from $6.3 million the year before. Exalenz shares ended down 0.1% at 13.89 shekels ($3.83). (Yoram Gabison)

Teva discontinues trials of fremanezumab to treat cluster headaches 

Teva Pharmaceuticals said Friday it would discontinue trial testing its drug for the treatment of chronic cluster headache, after an analysis showed that it was unlikely to meet the study’s main goal. Cluster headaches occur in cyclical patterns, or clusters, and are among the most painful type of headache. Fremanezumab, is under review by the U.S. Food and Drug Administration for prevention of migraines in adults and the company hopes to launch the drug for the disorder as soon as mid-September. Teva, which is counting on fremanezumab to help it return to growth, plans to continue testing the drug for the treatment of episodic cluster headaches. “While we are disappointed with this outcome, we remain optimistic that fremanezumab could have clinical benefits in additional conditions, beyond migraine,” said Tushar Shah, senior vice president and head of global specialty clinical development. Teva shares ended down 0.7% at 85.14 shekels ($23.49). (Reuters)

Neon Therapeutics moves forward with $100 million U.S. IPO

Neon Therapeutics, a developer of targeted immunotherapy platform for a variety of cancers that is partly owned by Israel’s Clal Biotechnology, said Friday it was raising $100 million on Wall Street. The Cambridge, Massachusetts-based company said it was offering 6.3 million shares at a range of $15 to $17 to be listed on the Nasdaq under the symbol NTGN. Insiders intend to buy $35 million worth of shares in the offering, which values Neon at about $351 million before the money. Founded in 2013, its therapies aim to direct the body’s immune system toward neoantigens, which fight tumors. Its main shareholder is the Boston-based venture capital fund Third Rock with 44.4%. Clal Biotechnology holds just a 4.55% stake, which will be diluted to 3.55% after the offering. However, the holding now is listed on its books at just $12 million. Clal Biotechnology shares finished 3.3% higher at 3.32 shekels (92 cents). (Yoram Gabison)

Tel Aviv shares end lower in dull trading

Tel Aviv shares ended lower Sunday in dull trading. The benchmark TA-35 index finished down 0.1% at 1,540.28 points, while the TA-125 edged 0.05% lower to 1,329.16, on turnover of 425 million shekels ($117 million). Among the biggest losers in the TA-125, Opko Health sunk 23.2% to 15.81 shekels and SodasStream lost 2.7% to 318.30. Clal Insurance, whose board named Yoram Naveh as its new CEO, dropped 2.6% to 53. TowerJazz lost 1.8% to 85.86, bringing its year-to-date decline to 27%. Housing & Construction Limited jumped 5.1% to 7.15 after Arison Holdings said last week it was selling its controlling stake to Israeli-U.S. real estate entrepreneur Naty Saidoff. Ham-Let rose 1.3% 95.11 after it reported buying a South Korea’s S&S Value for $6 million. In foreign currency trading on Friday, the dollar breached the 3.6-shekel mark, strengthening 0.25% to a representative rate of 3.6050 shekels. The euro tumbled 1.7% to 4.1789 shekels. (TheMarker)

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