The TASE recognizes high tech companies’ need to raise capital in their early stages. Therefore, the TASE laid down rules to enable R&D companies to offer shares to the public under particularly lenient terms.
R&D companies are not required to present a certain period of activity or level of shareholders’ equity prior to their IPO. The minimum public-float rate is relatively low, making it easier for R&D companies to raise capital on the TASE at an early stage in their life cycle, with relatively little dilution of the founders’ holdings.
An IPO on the TASE can serve as a convenient stepping-stone to an additional issue on NASDAQ and other stock markets, as the company matures. The Dual-Listing Law on NYSE, NASDAQ, AMEX or the London Stock Exchange enables companies that initially issued on the TASE and later listed in the U.S.A. or U.K. to report according to U.S.A. or U.K. reporting rules, so that they are not required to report under two different sets of rules.
The TASE's Tel-Tech index helps to increase the exposure of technology companies traded in Tel-Aviv to the investing public.