Inrom Industries Ltd., a maker of construction products, plans to sell 350 million shekels ($101 million) of shares in the largest initial public offering on the Tel Aviv exchange in four years.
Airport City, Israel-based Inrom, controlled by private equity fund FIMI Opportunity Funds, is selling 44.3 percent of the company, according to a prospectus it filed with the bourse. The sale will be the biggest since June 2010, when Azrieli Group (AZRG) raised about two billion shekels, according to bourse data
The IPO comes amid falling trading volume, a decline in foreign investment and a spate of companies delisting from the exchange. The downturn in activity began after MSCI Inc. (MSCI) promoted Israel from its emerging-market index to the developed market gauge in May 2010, where it had a much smaller weighting.
The planned Inrom sale would eclipse the total value of Tel Aviv IPOs in the last two years. New companies listing on the exchange raised 320 million shekels in 2013 and there were no initial offerings in 2012, according to bourse data. That compares with eight Israeli companies raising $361 million in foreign IPO’s last year, the most since 2007, according to data from IVC Research Center.
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