In its 3.4.2014 meeting, the Tel Aviv Stock Exchange (TASE) Board of Directors approved the launch of the TA Tech-Elite index, which will comprise the shares of the leading Technology and Biomed companies. The new index includes companies with a free float of at least 25% and a market cap of at least NIS 400 million. The minimum market cap required from IPO companies for fast track entrance into the index is set at NIS 200 million. The number of constituents in the index is not limited, while the weight cap of a single constituent is set at 10%. It is anticipated that this new index will also be part of the new “Israeli High-tech” index, which will be calculated by an international index vendor and is expected to serve as the underlying asset for various index-tracking products, enabling greater exposure of Israel’s high tech industry among foreign investors. There are currently 34 companies eligible for inclusion in the TA Tech-Elite index, 23 of which are Technology companies and 11Biomed companies. The cumulative float-adjusted market cap of these companies exceeds NIS 45 billion.
The index is scheduled for launch on 11 May 2014.
The launch of this index constitutes the first step in implementing the recommendations of the Committee to Promote Investment in Public Companies Engaged in R&D, which examined ways to encourage the listing of technology companies on TASE.
Along with the launch of the new index the board also decided to expand the TA BlueTech-50 index into the TA-BlueTech index, a composite share price index comprising all constituents of the TA-Technology and TA-Biomed indices, without limitations on the number of index constituents, starting 15 June 2014 (the upcoming rebalancing date for TASE share price indices). It is expected that 7 companies, with a combined market cap of NIS 950 million will join the TA-BlueTech index as a result of this revision.
Robby Goldenberg, Senior Vice President and Head of the Trading and Derivatives Department remarked: “The launch of the TA Tech-Elite index is yet another measure undertaken by TASE to broaden the spectrum of financial products it offers the public, in accordance with market needs. The new index is expected to focus attention on large technology and biomed companies, render the listing of high tech companies on TASE more compelling and improve the liquidity of high tech shares.”
According to Hani Shitrit, Senior Vice President, Head of the Economic Department and the person chairing the Committee to Promote Investment in Public Companies Engaged in R&D, “The Israel Securities Authority and TASE have started to implement the committee’s recommendations and are currently initiating the required legislative amendments.” The launch of the TA Tech-Elite index, the “Israeli High-tech” index and the promotion of market research on listed companies will improve market efficiency and increase the exposure of institutional, retail and foreign investors to Israeli high tech companies.”
A list of potential TA Tech-Elite constituents follows:
No. |
TASE ID NO. |
Company Name |
Market Cap |
Free Float |
Weight |
1 |
273011 |
Nice |
9,069 |
8,565 |
10.00% |
2 |
1129543 |
Opko Health |
12,678 |
6,518 |
10.00% |
3 |
1081124 |
Elbit Systems |
9,062 |
4,903 |
10.00% |
4 |
1082544 |
EZchip Semiconducters |
2,599 |
2,392 |
6.35% |
5 |
1123017 |
LivePerson |
2,266 |
1,630 |
4.33% |
6 |
1085208 |
Compugen |
1,674 |
1,610 |
4.28% |
7 |
260018 |
Ormat |
3,011 |
1,540 |
4.09% |
8 |
1099654 |
Allot Communications |
1,626 |
1,482 |
3.94% |
9 |
1094119 |
Kamada |
1,868 |
1,379 |
3.66% |
10 |
1106855 |
Mazor Robotics |
1,670 |
1,290 |
3.43% |
11 |
1105055 |
Evogene |
1,680 |
1,274 |
3.38% |
12 |
1082692 |
Silicom |
1,550 |
1,180 |
3.14% |
13 |
1095819 |
Perion Network |
2,583 |
1,000 |
2.66% |
14 |
1120609 |
Protalix |
1,571 |
946 |
2.51% |
15 |
1082379 |
Tower Semiconductor |
1,481 |
929 |
2.47% |
16 |
1084557 |
Nova Measuring Instruments |
1,083 |
895 |
2.38% |
17 |
256016 |
Formula Systems |
1,568 |
838 |
2.23% |
18 |
1121730 |
Pluristem Therapeutics |
833 |
770 |
2.05% |
19 |
1082965 |
Audiocodes |
962 |
681 |
1.81% |
20 |
1087659 |
Sapiens International |
1,325 |
676 |
1.80% |
21 |
1082312 |
Magic Software Enterprises |
1,222 |
672 |
1.78% |
22 |
1126226 |
Photomedex |
1,126 |
654 |
1.74% |
23 |
445015 |
Matrix IT |
1,231 |
610 |
1.62% |
24 |
1100718 |
Brainsway |
872 |
523 |
1.39% |
25 |
749077 |
Elron Electronic Industries |
1,010 |
497 |
1.32% |
26 |
1082510 |
Gilat Satellite Networks |
739 |
461 |
1.22% |
27 |
1104280 |
Clal Biotechnology Industries |
1,477 |
431 |
1.15% |
28 |
1085166 |
Ceragon Networks |
548 |
430 |
1.14% |
29 |
1084698 |
Hilan |
617 |
322 |
0.85% |
30 |
1122381 |
Redhill Biopharma |
434 |
314 |
0.83% |
31 |
1091065 |
Maytronics |
823 |
283 |
0.75% |
32 |
1091651 |
Arad |
768 |
230 |
0.61% |
33 |
1102458 |
Medical Itamar |
420 |
224 |
0.60% |
34 |
161018 |
One Software Technologies |
620 |
194 |
0.51% |
|
|
|
72,066 |
46,342 |
100% |
