The Tel Aviv Stock Exchange (TASE) is implementing an innovative program designed to increase local and foreign investor awareness of high tech companies publicly traded on the Tel-Aviv Stock Exchange. “Project Analysis" which was approved by the TASE Board of Directors at its July 27th meeting, facilitates analyst coverage of TASE-listed high-tech companies, and of TASE’s “Technology” and “Biomed” sectors. The initiative is part of TASE’s implementation of the recommendations tendered by the Committee to Promote Investment in Public Companies Engaged in R&D and it follows the launch of the TA Tech-Elite index this past May.
One of the important mechanisms for promoting proper valuation of publicly traded companies is market analysis conducted by research firms, which facilitates the evaluation of corporate filings and securities pricing. Close to 130 Technology and Biomed companies currently trade on TASE, however these industries receive little analyst coverage in the Israeli market. The project approved by the TASE board is designed to encourage investment in these companies by lowering the barrier inherent in the current lack of understanding in the market regarding them and the industries in which they operate.
Project Analysis will include two types of market analysis:
• Independent analysis on individual high tech companies which will include:
- A minimum of two years coverage of a reviewed company;
- The publication of at least four analyses each year in Hebrew and English, following disclosure of the company’s financial statements. The initial analysis and those following the publication of the company’s annual reports will be comprehensive.
- Updates to the analysis will be published after the disclosure of material events.
• In addition to these reports, TASE will fund industry analysis of sub-sectors included in the Technology and Biomed sectors, as follows:
- In the Biomed sector, 3 subsectors: biotechnology, medical devices and investments in life science.
- In Technology, 8 subsectors: IT services, software and Internet, electronics and optics, defense, communications equipment, semiconductors, clean-tech and investments in high tech.
TASE will publish a request for proposals by Israeli and international research firms interested in taking part in the project shortly. TASE estimates that the company publishing the analyses will be selected by the end of the year.
Ms. Hani Shitrit Bach, Senior Vice President and Head of the Economic Department, remarked that the publication of market analysis on the various companies will broaden public and institutional investor knowledge in the Technology and Biomed sectors and will enhance the understanding of the fields in which the various tech companies operate. We hope that this will promote their proper valuation and increase the liquidity of these companies’ shares.”
