The TASE is the “home market” for Israeli companies. Initial Public Offerings (IPOs) on the TASE have numerous advantages.
Companies offering their shares to the public for the first time (IPOs) must follow one of three listing alternatives. The TASE emphasizes the liquidity of the securities; thus a minimum public-float value and rate is required, in addition to a minimum distribution of public holdings. Lock-up rules apply to shares held by founders and others major shareholders prior to the IPO.
The TASE recognizes the need of high-tech companies to raise funds in their early stages. Therefore, the TASE laid-down rules that enable R&D companies to offer shares to the public under particularly lenient terms. An R&D company is defined as a company that has invested at least NIS 3 million in research and development over the last three years, including investments of funds received from the Office of the Chief Scientist (O.C.S), Ministry of Industry and Trade. Confirmation of R&D investments is obtained from the Chief Scientist. R&D companies are not required to present a certain period of activity or level of shareholders’ equity prior to IPO. Further, the minimum public-float rate is relatively low.
The IPO team at the TASE provides additional information to companies considering an IPO and others operating in the securities industry.