Two Israeli technology companies joined trading on Wall Street last week: WalkMe, which was issued at a value of $ 2.6 billion and raised $ 287 million, and Tremor International at a value of $ 1.4 billion, while raising a total of $ 129 million. This increased the number of Israeli companies issued on Wall Street since the beginning of the year to 7, not including SPAC companies (inactive companies, which raise money in order to acquire an existing company).
A Globes survey shows that three of them have yielded phenomenal returns for investors since their IPOs: the marine transportation company Zim, and the two technology companies Global-E and Monday. Zim was issued in January and its share fell sharply on the first trading day, mimicking its investors by 23%. But then the stock began a recovery process, amid positive reports of debt repayments and new ship leases, positive financial results and rising sea transportation prices, so that today Zim’s share price is $ 42.3 compared to $ 15 in IPO, a cumulative return of 182%, and a reflective price to the company. Market capitalization of $ 4.9 billion. Some of the company’s shareholders took advantage of this increase to sell some of their holdings recently, in a sale offer at a price of $ 40 per share.
Another stock that posted a triple-digit return from its IPO is Global-E, which since its IPO in May at a price of $ 25 has already jumped 114% to a price of about $ 53.5, reflecting a value of $ 7.6 billion. Global-E develops technology for the field of online commerce and among those who benefit from the increase in value, we can mention Cross Ship and Deutsche Post, the major shareholders, as well as the AMI fund of Apax, which is a prominent shareholder in Global-E, and also the company’s founders, Amir Schlecht .
A huge positive return is currently also recorded in the Monday stock, which has developed an operating system for work and its stock has risen by 50% in just 7 trading days. The company was issued at a price of $ 155 per share, which was significantly higher than the price range it aimed for ($ 125-140), and has since risen by 50% to a price of over $ 232 – so the company’s value has exceeded the $ 10 billion mark. It has thus become the seventh largest Israeli company on Wall Street, and is in a good place between Teva and Amdocs.
Start with the left leg
Among the Israeli issuers on Wall Street, a slightly different story is that of Tremor, who, as mentioned, completed its issuance last week. This is because the company, which operates in the field of digital advertising, has previously been traded on the London Stock Exchange, and its issue on the Nasdaq was of the ADS type – of stock tracking bonds in London. The ADS price in the issue is set at $ 19, with each bond reflecting 2 shares.
On its first day, trading in Tremor was down 5.8%. WalkMe, which developed software that simplifies the use of complex enterprise software, also began trading in declines, and on its first trading day it weakened by 7.1%. Later in the week, however, the stock recovered slightly and is now trading at a price that is 6.3% lower than the issue price.
Those that are traded at less than the issue price
Apart from Tremor and WalkMe, two other companies are currently trading at a price lower than their issue price: Gaming Playtica, which became the largest issue to come out of Israel in January – raising $ 11.1 billion and $ 27 a share – has since lost 11%. It is currently traded at a price slightly below $ 24 and its market value is $ 9.8 billion.
The second is SimilarWeb, which has developed a platform for analyzing and predicting the behavior of Internet surfers, which was issued in May at a share price that was higher than the asking price range in the IPO – $ 22, compared to a range of $ 19-21. The company has raised $ 165 million at a value of about $ 1.6 billion, but at least so far – except for one trading day in June, its share price has always locked in at a price lower than the offering. The share price is currently about $ 19.1, which reflects the company’s market value of about $ 1.4 billion.