Israeli IPOs in 2014

The following does not claim to be a comprehensive list but includes notable 2014 IPOs from Israel on the NASDAQ, NYSE and AIM.

Mobileye (IT)

In July, automobile tech firm Mobileye held the largest IPO in Israel’s history on the New York Stock Exchange. Mobileye were able to navigate an extremely tough external environment to become the 10th largest IPO in the US this year. Their share sales exceeded those of Partner Communication Ltd’s $525 million in October of 2009 to become the biggest offering by an Israeli company in the U.S. Mobileye’s software has been developed to avoid car accidents. Installed in over 3 million cars by March this year, it alerts drivers to hazards such as pedestrians and unintended lane departures, with the aim of enabling hands free driving on the roads by 2016. Its current market capitalisation of $7.8 billion places it as the third largest public Israeli company by market cap, preceded only by Teva Pharmaceutical Industries Ltd and CheckPoint Systems Inc.

Rewalk Robotics (Life Sciences)

Rewalk Robotics listed on NASDAQ in September, raising $36 million in its IPO. Its shared doubled in the first few hours of trading to $24, giving the company an initial market capitalisation of $250 million. Rewalk has produced a life-changing product, a wearable exoskeleton that enables those with Spinal Cord injury to stand upright and walk. Earlier this year, it obtained approval from the U.S. Food and Drug Administration for personal use, the first and only exoskeleton cleared by the FDA. ‘ReWalking’ has been shown to provide numerous physical as well as psychological benefits, including loss of fat tissue, building of lean muscle and improved bowel function.

Varonis Systems (Security)

Software maker Varonis Systems held its IPO in February this year, its market capitalisation nearing $1 billion by the close of trade on the NASDAQ. An extremely successful float, its share price doubled on its first day of trading from $22 to $44. Varonis assists enterprises in managing, analysing and protecting their unstructured data, such as documents, spreadsheets, memos and emails. Among Varonis’ high-profile clients are NASDAQ, New York’s Metropolitan Museum of Art, Barclays and Philip Morris.

Matomy Media Group (Media)

Matomy listed on the London Stock Exchange in July, the second company to be admitted to the LSE’s new High Growth Segment, a platform designed to attract high growth businesses with the drive and capability to expand globally. The fifth Israeli company to list on London’s markets in 2014, Matomy raised $70.1 million and is now the only company listed on the High Growth Segment platform. Matomy is a digital media company specialising in performance-based advertising, charging customers only if its marketing campaign achieves specific, measurable results. Founded in 2007, it has seen rapid growth in recent years with over 1,500 customers such as American Express, AT&T and HSBC.

Kite Pharma (Life Sciences)

Biopharmaceutical company, Kite Pharma, had an extremely successful Wall Street debut in June of this year, with its shares opening up 50% from their IPO price. The company develops cancer treatment therapies that utilise patients’ immune systems to destroy cancer cells. Its lead program, KTE-C19, reprograms a patient’s T-cells to transform them into cancer-fighting agents. Kite plans to use its IPO funds to further its drug studies and apply for an accelerated FDA approval.

Macrocure (Life Sciences)

Macrocure uses regenerative medicine to develop, manufacture and commercialise novel cell therapy products to treat chronic and other hard-to-heal wounds. Macrocure plan to use the funds from their IPO to finish developing their lead product, CureXcell, which uses cell based therapy to restore the natural healing process to severe wounds. This approach involves injecting the human body’s own wound healing and regenerative components into the wound itself. CureXcell has been approved as a medical device in Israel and has been successfully used in over 5,000 patients. Macrocure is at present looking to gain market approval for its product in the U.S. and Europe through further clinical trial.

BioBlast Pharma (Life Sciences)

A startup founded in 2012, BioBlast Pharma has expanded rapidly, listing on the NASDAQ in July. BioBlast Pharma focuses on treating rare and ultra-rare genetic diseases such as Machado Joseph disease and Kennedy’s disease for which there are few satisfactory treatment options. Pharma have developed potential treatments for six rare diseases, with plans to use the proceeds from their IPO to fund the completion of clinical programs for each.

Mediwound (Life Sciences)

Mediwound, another biotech company, went public earlier this year in March. Developer of products for treating wounds and burns, it successfully floated on the NASDAQ, trading nearly 30% up from its IPO price during the first few days of trading. Its leading biopharmaceutical product, NexoBrid, serves as an alternative to surgery for damaged tissues, avoiding the need for hospitalisation, the risk of exposure to infections and the removal of healthy tissue.

Borderfree Inc (E-commerce)

E-commerce company, Borderfree Inc, went public on NASDAQ in March of this year, pricing its shares at $16, the top end of its planned price range.  Borderfree’s platform enables department stores and large U.S. retailers to sell to customers in more than 100 countries, in 40 currencies. It has nearly 100 customers, including heavyweight retailers Saks Fifth Avenue, Sears, Bloomingdales and Macy’s.

Bagir (Retail)

Israeli suit maker, Bagir Group Ltd, listed on London’s Alternative Investment Market in April. Valued at $47 million, it is one of the largest formalwear makers in the British market, with 12.5% of British men wearing a Bagir-manufactured suit. Recognisable brand names Bagir markets its products under include Brooks Brothers, Jay Godfrey, House of Fraser and Burton. Bagir has recently entered the Australian market – so keep your eyes peeled!

Lumenis Ltd (Life Sciences)

February of this year saw medical equipment company Lumenis Ltd go public on NASDAQ at $75 million. A global leader in the field of minimally-invasive clinical solutions for the surgical, ophthalmic and aesthetic markets, Lumenis has developed and commercialised innovate energy-based technologies, including laser, intense pulsed light and radio-frequency technologies. It plans to funnel the capital raised on the NASDAQ into R&D investments to keep delivering innovative products to its customers worldwide.

SafeCharge (Security)

In April, payments solutions provider SafeCharge, listed on the London Stock Exchange’s Alternative Investment Market. A payment partner across a diversified, blue chip client base, it works with merchants in the regulated European sports betting and gaming industry, retail securities derivatives and FX trading sector. It has over 500 active clients, including online gambling operators Gala Coral and William Hill. SafeCharge raised 25% more than intended from its IPO, $125 million, receiving substantial demand from institutional investors such as JPMorgan Asset Management. Able to process 300 transactions a second, last year SafeCharge generated revenues of $43.2 million.

Companies to watch

As well as those that have already listed, there are a number of companies gearing up to IPO in the coming months. Here are some to watch out for:

Outbrain (IT)

If there is one company you have definitely come into contact with on this list, it is Outbrain. Outbrain is the engine behind those recommended news stories and videos you come across at the end of an article you’ve just read. Entering the public market might be in the works for this content and video recommendation start-up, with potential plans to raise $100 million in an IPO that would value the company at over $1 billion. Currently valued at $800 million with revenues of $130 million, Outbrain helps websites keep users on their sites for longer and increases traffic, allowing advertisers to distribute marketing content alongside their recommendations. Outbrain has revenue-sharing agreements with numerous high-traffic sites maintained by such entities as the Chicago Tribune, CNN and Fox News and works with brands such as American Express, Procter & Gamble and ExxonMobil.

Silenseed (Life Sciences)

Silenseed is a biotechnology company developing treatments for malignant solid tumors that appear in 85% of human cancers. Silenseed aims to target pancreatic cancer, prostate cancer and several brain cancers. It filed for an IPO in June with plans to raise up to $35 million on the NASDAQ. Silenseed is based at Hadassah Hebrew University Medical Center in Jerusalem and claims that its new drugs and delivery systems, based on the concept of RNA interference, have the potential to be one of the most effective treatments for solid tumor cancers.

NeuroDerm Ltd  (Life Sciences)

Neuroderm, transdermal drug delivery system developer, filed a draft prospectus for a NASDAQ IPO earlier this year. NeuroDerm develops treatments for central nervous system disorders, enabling new routes of administration for existing drugs that overcome their current deficiencies and achieve better clinical results. It has two products in clinical trials for the treatment of Parkinson’s disease and was the first to develop liquid levodopa, the gold standard treatment for the disease.

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