SGX and Tel Aviv stock exchange partner to attract tech companies

SGX and the Tel Aviv stock exchanges have partnered up to allow technology and healthcare companies to list and raise money on both markets simultaneously.
Reuters

JERUSALEM – The Tel Aviv and Singapore stock exchanges have partnered up to allow technology and healthcare companies to list and raise money on both markets simultaneously.

The focus will be on Israeli technology and biomed companies seeking to penetrate Asian markets, the bourses said in a joint statement.

This will include helping companies during the pre-listing stage, facilitating the listing process, and providing issuers with post-listing support by leveraging the exchanges’ network and platforms.

The Tel Aviv Stock Exchange has been tapping into new markets, as well as making internal changes, in an effort to boost trade volumes.

The Israel Securities Authority in January had approved a plan to allow Israeli companies traded in Singapore, as well as Hong Kong and Toronto, to easily dual-list on the Tel Aviv.

In February, Reuters reported that more than 10 foreign stock exchanges have shown interest in buying a controlling stake in the Tel Aviv Stock Exchange (TASE), citing a source.

TASE last September demutualized and became a for-profit exchange, offering to buy out its shareholders to list on its own bourse in 2019 at a value of about $150 million.

Itai Ben-Zeev said in February that TASE has commitments from member banks to buy back 71.7 percent of their shares, a stake that will be sold to a large foreign exchange as a strategic partner ahead of going public.

Member banks would retain a 22 percent stake in TASE while TASE employees own another 6 percent.

TASE had until April 18 to accept the buyback offer.

“More than 10 exchanges have signed nondisclosure agreements,” the source told Reuters, declining to elaborate.

Israeli media said they included exchanges in London, Toronto, Hong Kong, Singapore, Australia and Warsaw but the source declined to confirm. TASE officials declined to comment.

The Tel Aviv exchange aims to become competitive, cheaper and more efficient after seeing around 200 de-listings over the past decade and trading volumes slump.

In 2017 stock trading averaged 1.4 billion shekels ($402 million) a day, up slightly from 2016 on a rise in IPOs but below 2 billion shekels in 2010.