JERUSALEM (Reuters) – Israel’s securities regulator, banks in the US financial services group Jefferies’ membership on the Tel Aviv bourse to help promote a public offering of the country’s high-tech companies.
Jefferies is a member of the Tel-Aviv Stock Exchange (TASE) as a member in June, and in August, the TASE of the initial public offering, which is valued on the stock market at 710 million shekels ($205 million).
Anat Guetta, the head of Israel’s securities authority, said she expects Jefferies to underwrite a high-tech Ipos on the TASE that has been shunned by many in the country and the sector, to the advantage of foreign stock exchanges, such as Nasdaq.
“We are at a turning point,” Guetta told Reuters after the annual Eli Hurvitz’s economy conference. “We need a new foreign insurer in … to The mission of Jefferies to lead the Initial public offerings of Israeli high-tech companies in Tel Aviv.”
There was no immediate comment from Jefferies.
In June, Natti Ginor, head of Israel’s markets at Jefferies, said: “Our company has been doing business in Israel for about 20 years … and we look forward to helping the continued growth of the TASE and the companies that are listed on it.”
During her speech at the conference and Hence it has been said that in Israel, the tech sector has been one of the most important driving force for growth, and the public of the benefits of this.
“A new High-tech companies are not going IPO in Tel-Aviv, and institutions, to invest a small portion of their portfolios in the high-tech sector in Israel,” she said, adding it was only 0.16%, compared to 4-5% for foreign companies.
“Our capital market has been cut-off from the success of the high-tech,” Guetta said.
The majority of the Israeli high-tech companies, either to list on the Nasdaq or any other stock exchange, or to find their own funding, and ultimately will be bought by multi-nationals, such as in a deal announced on Monday, Intel Corp agreed to buy the Israel is an artificial intelligence, a chip maker, Habana Labs for up to $2 billion.
“It’s a loss for us, as a province,” Guetta said, pointing out that the many Israeli companies are reducing operations in Israel, and then being bought up by foreign companies. “Our economy is the loss of value in the course of time.”
With israeli institutions, ” she said, usually do not invest in high-tech applications due to a lack of expertise in the modelling of the tech companies.
“They have been very good at real estate investing and finance, but in the high-tech sector, very specific expertise, which they lack today,” Guetta said.
Reporting by Steven Scheer; Editing by Emelia Sithole-Matarise