The Tel Aviv Stock Exchange (TASE) and international research firm, Edison Investment Research, today announced an agreement for the analysis of technology and biomed companies listed on the TASE. This agreement is the first of its kind and forms part of the analysis project promoted by the Committee for Promotion of Investments in Research and Development traded companies (the R&D Committee). The goal is to encourage investment in these companies by removing the barrier of a lack of understanding in the market.
Published analysis from research firms is an important and globally recognized mechanism in promoting the proper pricing of listed companies. It helps examine information released by these companies and assists the pricing of securities. Around 130 technology and biomed companies are listed on the TASE, either exclusively or dually, yet analysis of companies operating in this developing sector is rarely published in the Israeli market.
Edison has a team of over 100 analysts and reviews more than 420 companies around the world. The firm has vast experience in the field and, as part of the agreement, Edison will distribute the research globally via its own extensive email and social media distribution lists as well as making it available on 17 different professional and internet information platforms around the globe. Access to the research will be free to all users and access to it will be unrestricted.
To maintain independence, the high-tech companies will sign a two-year agreement with the TASE for the service and will not be able to leave the program during this time. The companies reviewed will pay for the analysis while the TASE and the Ministry of Finance by the Chief Scientist will contribute a proportion of the cost for small and medium-sized enterprises. The analysis will include both financial and scientific analysis of each company as well as a target price range and will be published four times a year. In addition, Edison will publish updated analysis when there are significant events requiring this.
Under a directive issued by the Israel Securities Authority, the program will be launched when at least 10 companies have joined. The TASE intends to sign an agreement with an additional international research company to take part in the analysis program.
Dan Ridsdale, Head of Technology at Edison, said: “Edison is delighted to be working with the TASE and to be part of their innovative plans for improving the visibility, understanding and liquidity of companies on the exchange. We believe that the collaboration will give high-tech TASE-listed companies the global exposure that they deserve, while enabling investors both locally and internationally to make informed investment decisions. Israel is a global innovation hub that has created enormous economic and shareholder value across the technology and healthcare industries. Edison is proud to support the TASE’s drive to free up growth capital to help those firms execute their strategies for the benefit of stakeholders domestically and internationally".
Peter Molloy, President of Edison in the US, said: “Management and investors who understand the quality of Israeli companies want to feel as comfortable on TASE as they do on NASDAQ and the London Stock Exchange. Edison’s provision to TASE of equity research that meets international standards of excellence will ensure Tel Aviv maintains its proper place as a financial hub for global investors. Both global and local investors look to the Israeli technology and healthcare sectors for growth yet financial advisers are increasingly limited in their ability to advise on listed companies without independent research coverage – our partnership with TASE aims to help solve that conundrum for the benefit of companies and investors alike. The combination of our on-the-ground sector specialists in Israel, with our global analyst teams based in New York and London, will allow us to provide sophisticated investors, from the US and Europe to Asia, with the level and depth of research that they expect as the norm for making their decisions.”
Hani Shitrit-Bach, Senior VP and Head of the Economics and Listing Department of TASE said: "Analysis by an international firm specialising in the field will enable public and institutional investors in the biomed and technology sectors to expand and deepen their knowledge in the business of high-tech companies. Furthermore, publishing the analysis in English and the global distribution will facilitate the exposure of these companies to international investors seeking to invest in Israeli high-tech companies. We hope that this program will promote the proper pricing of high-tech companies and increase their liquidity".
http://www.edisoninvestmentresearch.com/
