Scope Metal Trading and Technical Services Ltd. (TASE: SCOP) has filed a registration statement with the US Securities and Exchange Commission (SEC) to list shares on Nasdaq. The company said that its controlling shareholders, chairman and CEO Shmuel Shiloh and First Israel Mezzanine Investors Fund (FIMI) will not sell shares as part of the offering.
Scope’s prospectus is based on its projects results for the third quarter of 2007. The company said that it predicts $74-75 million revenue on GAAP basis, including $25-26 million in sales outside Israel and including exports from Israel, compared with $62.3 million revenue for the corresponding quarter of 2006 and $75.9 million revenue for the second quarter of 2007. The company predicts an operating profit of $7-7.5 million for the third quarter, compared with $11.2 million for the corresponding quarter and $11.5 million for the preceding quarter.
Scope said that its third quarter results were affected by the cost of penetrating into new markets and the launch of new products, lower inventories by competitors, which put downward pressure on the prices of the company’s products, and the 2.5% rise in Israel’s Consumer Price Index (CPI) during the third quarter, which will substantially increase the company’s financial expenses on its index-linked liabilities.
UBS Investment Bank, CIBC World Markets, and Jeffries & Co. Inc. will be the underwriters.
Scope Metal fell 6.3% in morning trading on the TASE.
Published by Globes [online], Israel business news - www.globes.co.il - on October 14, 2007
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