The market cooled down: Ordea decided to cancel the offering

Orde’s decision seems to come against the background of the cooling of the local IPO market, following the price declines in the last month in the Tel Aviv Stock Exchange. In the background, in the past month (June) the local stock market was caught in a tizzy following the progress towards the agreement to end the war between Iran and the USA, which was reflected in a drop of up to 11% in the leading indices in June (the weakest month in Tel Aviv in two and a half years).

These, sent a long line of companies that submitted a prospectus during the month of May in preparation for an initial offering of their shares, to re-economize their steps. Until now, there has been a single cancellation of an IPO by the Aviv Real Estate Group of the brothers Doron Aviv and Dafna Harlev, which did not receive from the institutional investors the value it aimed for – NIS 1.5 billion (before the money), and was content with raising debt.

Those who, as far as is known, are still examining the IPO procedure are the real estate developer Avisror, which is targeting a value of 2.6 billion NIS, the pharmaceutical company Rafa (2.06 billion NIS), the manufacturer of assemblies Metallicon (700 million NIS) and the restaurant chain Kiso (400 million NIS).

“All the issuances are currently in a kind of hold,” a senior official in the underwriting market explained at the beginning of the week the delay in completing the issuances of half of the companies that submitted a prospectus in May. “The market in the last two or three weeks is much worse than when the companies started the process, so everything is pretty stuck. Right now, everyone wants to see where the market is going and based on that they will make decisions.”

“In the end, the institutions look at what’s happening in the market, and if there were 10% declines, they want a discount accordingly. Therefore, each company needs to do its homework and see if it suits it. Each one has its own story,” explained another source in the underwriting market.

Phoenix’s exit has been delayed

The cancellation of the IPO comes after during the month of May, which was a record month in the local IPO market, Ordea submitted a prospectus for an IPO of its shares on the stock exchange at a value of approximately NIS 880 million (before money). A move within the framework of which it sought to raise approximately NIS 90 million, in exchange for the allocation of approximately 10% of its shares to the public.

If the move were to come to fruition, it is expected to add value to the Phoenix insurance company, which last year purchased 20% of the company’s shares for NIS 100 million, according to a value of about NIS 400 million. But also for the controlling owner of the company, the Vengrovski family, the heirs of the late businessman Zelig Vengrovski, who owns it mainly through the Pema car financing group (total holding of 72% of the shares).

This, after in 2014 the company’s shares were deleted from trading on the Tel Aviv Stock Exchange, after they were transferred to the conservation list due to the low rate of public holdings. In doing so, it returned to the Wangrovsky family, who bought back most of the minority shares in it. The purchase by the controlling owner was made at a value of approximately NIS 120 million, about one-sixth of the value requested in the offering.

Orda, which has been managed for the past 17 years by Roni Haliva (who received a salary of NIS 3.6 million last year), has three main areas of activity: data production, packaging solutions and commercial printing. As part of the data field, the company provides software products for customer communication management (CCM) for a variety of entities (government, local authorities, finance, etc.). These help companies produce documents that are distributed to customers digitally and in print, including invoices, payment notices, payment books, payslips and the like.

In the field of packaging solutions, Ordea produces folding cardboard packaging, which includes, among other things, display stands and promotional products, which are mainly used by industrial, food, pharmaceutical, and cosmetic companies. Finally, in the field of commercial printing, it provides printing solutions used mainly for the production of books (learning, reading, reference), magazines, catalogs, and forms (lottery, deposit envelopes, etc.).

Ordea ended the year 2025 with revenues of approximately NIS 260 million, an increase of approximately 6.5% from the previous year. This, thanks to the growth in all its fields of activity. In the bottom line, there was a growth of about 9% in the net profit to about NIS 45.6 million.