Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) is due to hold its IPO on the Tel Aviv Stock Exchange (TASE) in June on the basis of its financial report for the first quarter of 2007. The company value for the offering will be NIS 2 billion, giving a p/e ratio of 13 on profits for the year. The company will reportedly issue 10-15% of its share capital, after which it will be listed on the Tel Aviv 100 index.
The company is now laying the groundwork for going public, including preparing transparent financial reports at the level of detail mandatory for a public company, reaching agreements with its shareholders and underwriters, and signing distribution contracts. The date and scope of the offering has not yet been officially decided on.
Israel Discount Bank (TASE: DSCT) owns 71.8% of ICC-Cal and First International Bank of Israel (TASE: FTIN1;FTIN5) owns 28.2%, after they acquired Fishman Holdings’ 24% stake at a company value of NIS 1.5 billion last year. The two banks are negotiating to buy the 5% stake held by Harel Insurance Investments Ltd. (TASE: HARL) at the same valuation. Closing a deal is a necessary condition for the IPO, because the Bank of Israel will require Discount Bank to own at least 51% of ICC-Cal.
Discount Bank records ICC-Cal at a value of NIS 392 million, which means that an IPO at a company value of NIS 2 billion will add value for the bank, generating a net capital gain of NIS 120-150 million.
Published by Globes [online], Israel business news - www.globes.co.il - on February 11, 2007
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