Bank Hapoalim (TASE: POLI) has completed an IPO for credit card company Isracard on the Tel Aviv Stock Exchange (TASE). Demand in yesterday’s public part of the tender was a fairly high NIS 300 million. Bank Hapoalim, managed by CEO Arik Pinto, planned to sell 5% of Isracard’s shares in the public part of the tender, but increased this to 7% through an option for an additional allocation. NIS 190 million was raised in the public section of the tender.
The bank held the main part of the tender for investment institutions last week, attracting NIS 2.5 billion in demand. For the IPO as a whole, Bank Hapoalim issued 65.2% of the Isracard’s shares at NIS 13.50 per share, reflected a company value of NIS 2.7 billion for Isracard. Proceeds for the IPO totaled NIS 1.8 billion. Isracard also distributed an NIS 867 million dividend before the IPO to Bank Hapoalim and Mizrahi Tefahot Bank, which holds nearly 2% of Isracard’s shares.
The IPO was one of the largest on the TASE in recent years. Bank Hapoalim held the IPO for Isracard, Israel’s biggest credit card company, managed by CEO Ron Weksler, in order to comply with the Promotion of Competition and Reduction of Concentration Law, which requires the two largest banks to sell the credit card companies that they own. Bank Hapoalim now has until 2021 to sell the rest of its shares in Isracard. The bank will attempt to sell the rest of its shares to a strategic investor as a single bloc to serve as a controlling core, which will enable Bank Hapoalim to obtain a control premium. If this proves impossible, the bank will sell its shares gradually on the TASE.
Bank Hapoalim was advised in the IPO by Adv. Shirel Gutman-Amira, Adv. Iris Cibulski-Havillo, Yaara Schori-Ben Harush, and Adv. Reut Israelashvili from the Agmon & Co. Rosenberg Hacohen & Co. law firm. Isracard was advised by Adv. Gur Nabel and Adv. Ben Gilboa from the Goldfarb Seligman & Co. law firm. Poalim IBI Undwriters led the IPO, with help from Leader, Epsilon, Barak Capital, Menorah Underwriters, and IPO consultant firm Mor Langerman.
Published by Globes, Israel business news – en.globes.co.il – on April 10, 2019
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