Of the 30 new listings completed this year on the Tel Aviv market TASE, a record number, 19, were high-tech companies (including five R&D partnerships).
Ittai Ben Zeev, TASE CEO, said: “This year marked a significant milestone in the strengthening of ties between TASE and local high-tech, as a record number of new technology companies joined TASE, with dozens more to come. Our strategy over the past few years has laid the foundation that allows TASE to better reflect the success of the Israeli high-tech and serve as a home for those companies.
“This year, more than ever, local companies across sectors sought TASE for capital raising and growth, and attracted great interest from both local investors and global players. As home of the Israeli economy, we believe that TASE is the natural venue for the Israeli companies, institutional investors and the public and expect to see the growth trend continue into the coming years.”
2020 was a peak year for TASE, where, more than ever, it has served as a primary and significant instrument for the continued business operations of Israeli companies, whether by way of IPOs and issuance of shares or raising of debt. This alongside a growing number of new investors on TASE.
The number of new companies that carried out IPOs on TASE was 27, the highest since 2007, of which eight raised at a market cap in excess of NIS 1 billion. After years of exclusively Dutch auction offerings in 2020, 21 new companies issued by book building offering to institutional investors, raising NIS 4.3 billion – 94% of the IPO raisings this year, compared to only three new issuers that opted for book building last year.
Another indication of the growing weight of the technology sector is the six high-tech companies that joined the TA-35 flagship index. The TA Tech-Elite and TA-Technology indices rose by 35% and 31%, respectively, similarly to the increase in the Nasdaq index (42%). These indices have also taken the lead in the five-year period of 2016-2020, with an increase of 123% and 195%, respectively.
Zeev added: “There is no reason for companies that grew up here and that have a significant center of operations in Israel not to join TASE. It benefits both the companies and the public that takes pride in the global success of Israeli minds and entrepreneurship and wants to play a part in it. Moreover, the companies enjoy increased liquidity and trading, diversification of raising instruments, home-market advantages, an easy exercise of employee stock options at a reduced cost and more. Today, more than 30% of total trading in dual listed shares is carried out on TASE. This substantial figure highlights the advantages of local trading alongside the trading overseas.”
The equities market was characterized by strong trading volumes that amounted to a daily NIS 1.9 billion, an increase of 43% over the average daily volume in 2019 and 36% over the average in the previous three years (2017-2019). Trading was highly volatile: in March, at the height of the crisis in the capital markets, the average daily trading volume amounted to NIS 2.9 billion, while in May through December the average daily trading volume was NIS 1.7 billion.