u.s. listing opportunities for israeli companies presented by guy cohen executive director, head of...
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![Page 1: U.S. Listing Opportunities for Israeli Companies Presented by Guy Cohen Executive Director, Head of Israeli Investment Banking, Oppenheimer April 2, 2008](https://reader034.vdocuments.net/reader034/viewer/2022051820/56649e4b5503460f94b4092d/html5/thumbnails/1.jpg)
U.S. Listing Opportunities for Israeli Companies
Presented by
Guy CohenExecutive Director,
Head of Israeli Investment Banking, Oppenheimer
April 2, 2008
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IPO Market Overview
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Market Snapshot
Source: FactSet, Bloomberg as of 3/28/08
Capital Markets Performance
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Market Snapshot (cont.)
Source: FactSet, Bloomberg as of 3/28/08
Economic/ Sentiment Indicators
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ECM Activity
Amount ($M)
Number of Deals
IPOs (1) Converts(3)P.I.P.E.s(2)Follow-ons
Source: Dealogic and Sagient Research as of 3/28/08Deal values exclude overallotment; Excludes closed-end funds and non-SPAC unit offerings(1) Includes SPACs(2) ≥ $20M and excludes capital injections(3) Includes publicly marketed capital injections
0
17,945
22
0
386
0
276
0
1,361
1,170
122
2,526 96
105
99
256
63
108
220
545
220
1,740
700
440
Week of 2/18
Week of 2/25
Week of 3/3
Week of 3/10
Week of 3/17
Week of 3/24
0 500
1000
1500
2000
2500
3000
3500
4000
0 500
1000
1500
2000
2500
3000
3500
4000
0 500
1000
1500
2000
2500
3000
3500
4000
0 500
1000
1500
2000
2500
3000
3500
4000
1
0
2
0
0
2
3
0
4
9
4
1 5
3
6
5
4
6
2
4
3
7
1
2Week of 2/18
Week of 2/25
Week of 3/3
Week of 3/10
Week of 3/17
Week of 3/24
0 2 4 6 8 10 12 14 16 0 2 4 6 8 10 12 14 16 0 2 4 6 8 10 12 14 16 0 2 4 6 8 10 12 14 16
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IPO Issuance
Sector Breakdown ($62.1B)Sector Breakdown ($62.1B)(2) (2) Monthly Issuance Monthly Issuance
0
6
12
18
24
30
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
# o
f D
eal
s
0.0
4,000.0
8,000.0
12,000.0
16,000.0
20,000.0
$ A
mo
un
t (M
)
Market Caps < $250M Market Caps ≥ $250M $ Amount (M)
Technology13%
Media8%
Telecom5%
Consumer6%
Industrial9%Energy & Utility
6%
Finance43%
Healthcare7%
Real Estate3%
Pace of Issuance In 2008, 10 IPOs priced to raise $18.7B(1) compared to 41 IPOs priced in Q107 that raised
$8.7 billion
In 2007, 205 IPOs priced to raise $43.3B
Recent IPOs – Visa, Cardionet, Heritage-Crystal Clean
The current IPO Backlog has approximately 93 transactions that are expected to raise $18.4B
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, market caps ≥ $50MExcludes SPACs(1) Including the IPO of VISA Inc. that raised $17.9 billion(2) Sector breakdown by $ amount
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IPO Performance
Source: Dealogic as of 3/28/08, Deal Value ≥ $20M, Excludes SPAC
Share Offered Relative to Shares FiledShare Offered Relative to Shares Filed Offer Price Relative to Filing RangeOffer Price Relative to Filing Range
Since 2007, 27.9% of IPOs priced above their initial filing ranges
IPOs have performed well on their first day of trading, up an average of 12.9%
With the recent volatility in the markets, current performance has suffered; since
2007, IPOs are down an average of 11.0% from their offer prices
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IPO Sizing Analysis
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs
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IPO Sizing Analysis (cont.)
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs
$ Amount by Market Cap$ Amount by Market Cap# of Deals by Market Cap# of Deals by Market Cap
2007-08 YTD IPOs2007-08 YTD IPOs
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2007- 2008 YTD Israeli IPOs in the US
Source: Dealogic as of 3/24/08, Shaded deals represent Oppenheimer bookrun offerings (includes Oppenheimer plus CIBC World Markets)Deal Value ≥$20M and excludes overallotment(1) IPO % Change Price Initial / Offer is calculated from mid-point of filing range to offer price
Pricing Date
Issuer NameTicker
SymbolSpecific Industry
Offer Price (US$)
Deal Value
Excl Ovl ($M)
Market Cap ($M)
% Change Price Initial / Offer (1)
% Change
Price Offer / 1
Day
% Change Price Offer /
Current
10/30/07 012 Smile.Communications Ltd SMLC Telecommunications-Telephone 12.00 80.1 304.3 (20.0) 0.0 (13.8)7/25/07 Voltaire Ltd VOLT Technology-Services 9.00 51.9 184.3 (30.8) (7.4) (38.9)7/18/07 Limco-Piedmont Inc LIMC Transportation-Airports 11.00 48.4 140.4 4.8 20.9 (45.5)5/23/07 STARLIMS Technologies Ltd LIMS Technology-Software 13.50 28.4 126.4 (1.5) 0.2 (44.5)
4/4/07 Veraz Networks Inc VRAZ Technology-Services 8.00 72.0 316.5 (27.3) (2.5) (66.6)3/14/07 BigBand Networks Inc BBND Technology-Networks 13.00 139.1 742.6 18.2 30.8 (53.5)2/26/07 Rosetta Genomics Ltd ROSG Healthcare-Drugs/Pharmaceuticals 7.00 26.3 78.8 (41.7) 4.6 (41.4)
2/7/07 Mellanox Technologies Ltd MLNX Technology-Semiconductors 17.00 102.0 506.6 30.8 17.7 (20.5)2/5/07 Cellcom Israel Ltd CEL Telecommunications-Wireless/Cellular 20.00 400.0 1,570.5 17.7 (2.3) 66.5
Number of Deals: 9 High 20.00 400.0 1,570.5 30.8 30.8 66.5 Total Amount Raised ($B): 0.9 Mean 12.28 105.3 441.2 (5.5) 6.9 (28.7)
Median 12.00 72.0 304.3 (1.5) 0.2 (41.4)Low 7.00 26.3 78.8 (41.7) (7.4) (66.6)
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Recent IPO Filings – SPAC dominance
Source: Dealogic as of 3/28/08Deal Value ≥ $20MExcludes closed-end funds and non-SPAC unit offerings* represents SPAC
SPAC Fillings:
Majority of recent filings
NASDAQ and NYSE proposed rule changes
Bulge Bracket sponsored SPACs
Investor appetite changes
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TM&T IPOs in Registration
Note: Deals filed within last 120 daysSource: Dealogic as of 3/28/08, Deal Value ≥ $20M
FilingDate
Issuer NameTicker
SymbolSpecific Industry
Current Deal Value
($M)Issuer Business Description
3/10/08 Eyeblaster Inc EYEB New Media-Software 115.0 Produces rich media ad technology and digital marketing solutions via a web dashboard.
2/14/08 IDS Group Inc IDSI Technology-Software 86.3 A provider of software services.
2/7/08 Real Goods Solar Inc RSOL Technology-Alternative Energy 57.5 A residential solar energy integrator.
1/28/08 Current Media Inc CRTM Media-Cable Television 100.0 Operators of cable television network.
11/1/08 Valor Computerized Systems Ltd VLOR Technology-Software 80.5 Develops software for circuit boards.
1/11/08 LogMeIn Inc LOGM Technology-Software 86.3 A provider of on-demand, remote-connectivity solutions to small and medium-sized businesses.
1/10/08 Intelius Inc INTL New Media-Services 143.8 A commerce company that provides intelligence services to consumers over the internet.
1/4/08 IPC Systems Holdings Corp IPCA Telecommunications-Telephone 400.0 A provider of communications services.
12/26/07 Source Photonics Inc SRSE Technology-Semiconductors 130.0 Provides optical communication products used in telecommunication systems and data communications networks.
12/21/07 Anda Networks Inc ANDA Technology-Networks 86.3 Developer of a network access platform for communication service providers to deliver data services.
12/18/07 GlassHouse Technologies Inc GLAS Technology-Software 100.0 Provides enterprise storage services, backup and recovery, business continuity, and program management
12/14/07 Infonxx Inc - Technology-Services 250.0 An information services provider.
12/14/07 ExactTarget Inc EXTG Technology-Software 86.3 Provider of on-demand email marketing software solutions.
12/11/07 Digital Domain Inc DTWO Media-Film 100.0 Full-service digital studio and production company.
11/30/07 Broadview Networks Holdings Inc - Telecommunications-Services 287.5 Provider of high-speed Internet access and services
High 400.0 Mean 140.6 Median 100.0 Low 57.5
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Healthcare IPOs in Registration
Note: Deals filed within last 120 daysSource: Dealogic as of 3/28/08, Deal Value ≥ $20M
FilingDate
Issuer NameTicker
SymbolSpecific Industry
Current Deal Value
($M)Issuer Business Description
3/20/08 Zogenix Inc ZGNX Healthcare-Drugs/Pharmaceuticals
86.3 Specialty pharmaceutical company.
3/13/08 Salient Surgical Technologies Inc SLNT Healthcare-Instruments 86.3 Medical technology company that develops and markets surgical products.
3/12/08 CyDex Pharmaceuticals Inc CYDX Healthcare-Drugs/Pharmaceuticals
50.0 Pharmaceutical company focused on the development and commercialization of drugs.
3/7/08 Bostwick Laboratories Inc BOST Healthcare-Miscellaneous Services
100.0 Laboratory focused on the diagnosis of cancer.
1/25/08 Phenomix Corp PHMX Healthcare-Drugs/Pharmaceuticals
86.3 Drug discovery firm investigating new treatments for immune system, central nervous system, and metabolic diseases.
1/23/08 Accuro Healthcare Solutions Inc ACCU Healthcare-Services 143.8 Provider of comprehensive solutions that enhance revenue and improve financial, clinical and logistical operational efficiencies for healthcare providers.
1/22/08 Cardiovascular Systems Inc CSII Healthcare-Instruments 86.3 Medical device development company that has completed designs, develops, testing, and markets clinical devices for the treatment of cardiovascular disease.
1/9/08 Bayhill Therapeutics Inc BHTX Healthcare-Drugs/Pharmaceuticals
86.3 A clinical-stage biopharmaceutical company.
1/9/08 Omeros Corp OMER Healthcare-Drugs/Pharmaceuticals
115.0 Biopharmaceutical company advancing a pipeline of product candidates for use in orthopedics, rheumatology, urology, cardiovascular medicine, general surgery and pain management.
12/31/07 Alma Lasers Ltd ALMA Healthcare-Instruments 86.3 Developer, manufacturer and marketer of laser, light and radiofrequency-based systems for the aesthetic medical market.
12/19/07 Prometheus Laboratories Inc - Healthcare-Drugs/Pharmaceuticals
100.0 Offers pharmaceutical products, pharmacogenetic testing, therapeutic drug metabolic monitoring, specialised surgical pathology and IT services.
High 143.8 Mean 93.3 Median 86.3 Low 50.0
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Exchange Comparison
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Maturity
Exchange/
Investor Type
Expansion
Growth
Initial Sales
R&D
Concept
Venture
Capital
Private
Equity
AIM
Candidates
TSX
Candidates
NASDAQ
Candidates
Investor and Exchange Stages
PE
VC
Note: Qualitative graph
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IPO Exchange Comparison
Source: Thomson Financial, IVC-Online and Exchange websites(1) Performance based on 60 days post-IPO
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2007 Initial Public Offerings
Source: Thomson Financial and IVC-Online
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Israeli Listings on Various Exchanges
Source: Thomson Financial
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Israeli Listings on Nasdaq
Source: Thomson Financial
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US Listing Advantages
Liquidity
Research Coverage
Technology and Healthcare Orientation
Shares as Acquisition Currency
Valuation
Israeli Companies Acceptance
Consideration point: Regulatory Enviroment
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US IPO Opportunity
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IPO Issues for Consideration
Selection of underwriters
Structure of IPO
Corporate governance
Professional services
Timing
Costs
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US IPO Timeline
A US IPO Process Typically Takes 12 – 14 Weeks amendments
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Introduction to Oppenheimer
Oppenheimer Investment Bank> Investment bank focused on Mid and
Small cap companies> Leading underwriter of Mid and Small
cap equity transactions with global distribution
> Leading financial advisor dedicated to providing best-in-class advice and M&A services globally
> Proven equity, convert and high yield sales and trading
> Leading provider of corporate and executive services
Oppenheimer Wealth Management> 7th largest independent U.S.
investment bank based on # of registered brokers
> Robust retail distribution network with ~1,300 financial advisors servicing high net worth individuals
> Manages ~$62 billion in Client Assets
Oppenheimer Asset Management> Provides traditional asset management
services and alternative investment strategies
> ~$17 billion in Assets under Management
> Broad institutional distribution network throughout Europe
> The Leading Israeli Investment Bank> 40 years of operation in Israel
> Most active underwriter of U.S.-listed Israeli companies
> Offices in China and Hong Kong> Leading underwriter of U.S.-listed
IPOs for Chinese companies
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Strong Commitment to Israel Over 65 financings since 1997 for $6.7 billion in gross proceeds
Over 10 M&A advisory assignments for $3.6 billion
Selected Transaction: