TASE plans to go public

The Tel Aviv Stock Exchange has made an offer to buy out its shareholders as it aims to list on its own market in 2019, chief executive Ittai Ben-Zeev said on Monday.

The exchange, which was demutualized and became for-profit in September as part of a plan to boost trading volumes and company listings, is awaiting its shareholders’ response after making the offer, which valued the bourse at $150 million, he told Reuters.

The TASE, which is currently owned by commercial and investment banks, would also approach overseas stock-exchange operators about taking a stake before it goes public, Ben-Zeev said.

“The argument for an IPO is for publicity and setting an example. It’s not that we need capital,” he said on the sidelines of an event at the exchange, adding that the IPO would be open to retail and institutional investors.

The TASE aims to become competitive, cheaper and more efficient after seeing some 200 delistings over the past decade and trading volumes slump. In 2017, stock trading averaged NIS 1.4 billion ($412 million) a day, up slightly from 2016 but well below NIS 2b. in 2010.

Its 458 listed companies are worth NIS 767b.

Ben-Zeev said the IPO would be based on 2018 financial results, but the size of the offering would depend on how much of their stakes members opt to sell.

By law, no entity may own more than 5% of TASE, and the stakes must be sold within five years or ahead of an IPO.

First International Bank of Israel has the largest stake, at 20%, followed by Bank Hapoalim, at about 13%, and Bank Leumi, with nearly 10%.

(Reuters)