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  Follow-On Offerings

One advantage for public companies is the ability to raise large amounts of capital from the public through follow-on offerings within a relatively short time.

Starting in 2004, the companies reporting requirements for annual financial statements were expanded, and contain detailed information, similar to a prospectus.
“Shelf Prospectus”

The new annual reports' format has allowed the Israeli Securities Authority (ISA) to facilitate the process for listed companies interested in raising additional capital.

The ISA has decided to implement a prospectus publication system used in various capital markets worldwide. Under this system, several offerings can be performed based on one prospectus, called a “shelf prospectus”. The prospectus is valid for two years. Several offerings can be performed during this period, provided that the framework for all the offerings is formulated when the prospectus is submitted. An offering (excluding the offering performed on the date of publication of the prospectus) can be carried out in full within a few hours of the company’s decision, using a shelf offering report.

The regulations stipulate some exceptions with regard to the type of companies to which the shelf prospectus procedure applies.
Types of Shares Offered

A listed company that has one type of shares may issue or allocate shares only of the type listed for trading. A listed company whose capital includes different types of shares can allocate shares of the preferred type, in terms of voting rights.

Public offerings – a public offering of shares and/or convertible securities and/or bonds is carried out based on a prospectus published by the company.
Rights Issuing

Rights issuing is the issue of securities offered proportionally to all of the company’s existing shareholders, and to all owners of convertible securities who are entitled to participate in the rights offering under the terms of the convertible securities. The TASE rules and regulations specify the timetable of a rights offering, rights trading, exercise of rights, etc.

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