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In Tel Aviv, they want the Israeli companies from Wall Street

The Tel Aviv Stock Exchange wants to participate in the capital raising celebration and calls on companies to trade simultaneously in both arenas, following the removal of a number of barriers. Itai Ben Zeev, CEO of the Stock Exchange:

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• The Tel Aviv Stock Exchange

• NASDAQ

• Itai Ben Zeev

• technology

Roast Greenberg

Sunday, 24 October 2021, 08:21 Updated: 08:35

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Is one bird in the hand better than two birds on the stock market?

Not if it is an Israeli technology company or biomed that trades dual: data recently published by the Tel Aviv Stock Exchange shows that the trading volume of the last 4 shares listed on the Tel Aviv Stock Exchange, along with trading on Wall Street or the London Stock Exchange, increased by 277.5% on average within 6 months.

The companies examined are the manufacturer of the Tactical radar manufacturer 'Rada', the biomed company 'Batm', the life sciences company 'Biomix', and the immunotherapy company 'Enlebex Therapeutics'. The average daily is 3 months after they also started trading on the Tel Aviv Stock Exchange.

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Israeli shares traded simultaneously in Tel Aviv and New York (Photo: Walla !, no)

For example (see table), the trading turnover of the Israeli tactical radar manufacturer 'Rada' increased by about 116% after completing 3 months of trading as a dual company. and 3 months before the duality transformation, was approximately $ 4.9 million on average, and after half a year already totaled approximately $ 10.7 million on average.

company immunotherapy, Anealievex Therapeutics is the main beneficiary among 4 tested, the average daily trading volume of its increased by -460% after about 3 months, which is also traded on the TASE alongside US trade on Nasdaq.

close to her was a biomedical company, atm, its trade turnover increased by -399% range from the end of May 2019 when It was still traded only on the London Stock Exchange, and by the end of November that year, then it also completed 3 months of trading on the Tel Aviv Stock Exchange as a dual.

Itai Ben Zeev, CEO of the Tel Aviv Stock Exchange. Will it be able to compete in a market dominated by venture capital funds? (Photo: Walla !, Tamar Mitzpi)

It should be noted that all the companies mentioned decided to come and trade on the local stock exchange as part of a strategy for attracting investments from among Israeli institutional factors, as well as from among the entire Israeli investing public.

At Ahuzat Beit, they identified the trend and, together with the Securities Authority, built a model that lowers the companies' obligation to report to the local stock exchange to Israeli investors, along with reducing the need to publish a designated prospectus.

, told Walla! Money that "the companies' joining the stock exchange as a duality has contributed to an increase in their trading volumes in both the foreign market and the aggregate trading volumes.

The companies receive a trading sequence with the trading of their shares on the Israeli stock exchange, and with the entry of our flagship indices, such as TA-35 and TA-125, passive and active demand will arrive that will support their share price. So the double listing is a WIN-WIN for everyone involved. "

Lowering the regulatory barriers also lowered the total costs required for companies in favor of trading on the local stock exchange, alongside the possibility of increasing the audience of investors and trading in the stock. All of these appeal mainly to small and medium-sized companies that are traded abroad and need a trading booster in the form of local investors.

But not only companies that are already traded abroad are on the stock market, And raise funds through it.

In fact, the TASE seeks to bite into the capital raising market currently dominated by venture capital funds. According to the stock exchange, about 10.5 thousand start-ups were established in the last decade (until 2020), which raised about $ 55 billion during that period. 90% of the capital was raised from foreign investors - mainly through venture capital funds.

Adv. Ilan Gerzi, senior partner and head of the capital market department at the law firm Pearl Cohen. The time differences cause continuous trading in a stock that is traded on both arenas simultaneously (Photo: Tomer Jacobson)

Is there a real incentive?

Adv.

, added to Walla! Money: And both in the US.

In addition, Israeli institutional investors can examine their investment in these companies more easily, thus navigating significant sums to them. And one of the most significant advantages is the company set a medium-sized capital markets in the US, is classified as a giant Israeli capital market, and as such it will receive exposure and media coverage, and technical assistance.

Today desirable technology companies consider raising capital Tel Aviv as a preliminary step for raising the US, for two years The latter indicated that the Israeli capital market knows how to generously price companies with significant growth potential. The procedure is currently cheap, and is estimated to cost about a month to 3 months.

It should be noted that the local stock market is not glittering for everyone.

The large Israeli technology companies that are currently traded mainly on Wall Street do not yet find it attractive.

In a conversation with the executives of some of the companies, Walla!

Money, because "there is really no incentive for a company that trades abroad and sells mainly there, to trade here.

"Whoever issues for the first time is a different story and maybe it's really worth it, but companies that have been trading for a long time on a leading American stock exchange, and are already crossing the world's largest investor ocean, will not find any advantage in the local lake."

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