Thursday 5 November 2020

Tel Aviv exchange sees stream of IPOs during coronavirus crisis | Reuters

Tel Aviv exchange sees stream of IPOs during coronavirus crisis | Reuters

Companies are lining up to go public in Tel Aviv at a rate unseen in over a decade with the stock exchange getting a much needed boost as coronavirus limitations prompt businesses to raise funds closer to home.

About 30 firms filed to list on the Tel Aviv Stock Exchange TASE.TA in the third quarter, a level unmatched since before the 2008 global financial crisis and up from 23 for all of 2019, according to the Israel Securities Authority (ISA).

There is of course no guarantee all will follow through in an economy hit by COVID-19, but this could help the exchange turn a corner after it lost many passive investors following a 2010 upgrade to developed market in the MSCI index.

Daily trade volume that was halved from a 2010 peak of $547 million has been slow to recover, reaching $365 million in 2019. The number of listed companies dwindled to 442 from 613.

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