"TASE Will Continue Taking Measures to Maintain its Position as a Major Contributor to Corporate Growth in Israel and to be an Effective Platform in Enabling Investors and the General Public to Share in the Success of the Israeli Economy"TASE Will Continue Taking Measures to Maintain its Position as a Major Contributor to Corporate Growth in Israel and to be an Effective Platform in Enabling Investors and the General Public to Share in the Success of the Israeli Economy.
In Our View, One of the Keys to TASE’s Growth is to Attract Foreign Money into Israel – Numerous Bodies Throughout the World With are Seeking the Right Way to Invest Their Considerable Funds in the “Start-Up Nation” and we are Sure That TASE can be the Most Suitable and Effective Instrument for Doing so.
One of the Measures we are Taking is to Create Collaborations Whereby Technology Companies Making Offerings on TASE Can Also be Exposed to Investors on Other Stock Exchanges. The Key Point is not to Focus Just on the Collaboration, but to Provide the Israeli Companies with True Long-Term Value and This is What Motivates us”
Today (Wednesday, December 20, 2017), TASE held its annual press conference and announced a record year for equity raised by new companies on TASE. Ittai Ben-Zeev, TASE’s CEO, presented the principal measures and progress in achieving the three goals that had been defined within the framework of the strategic plan presented in April of this year, by means of which TASE is striving to become the dominant player in corporate growth in Israel and to be an effective platform in enabling investors and the general public to share in the success of the Israeli economy.
As mentioned, the plan has three central goals: to make TASE the main channel for raising equity; to enhance liquidity; and to expand TASE’s basket of services.
The data show that 2017 has been a record year for TASE, in which it has once again become the main and most significant channel for raising equity for a wide range of companies from various sectors, including high-tech. This year 20 new companies joined TASE, with 17 of them making IPOs and the other three joining under the dual listing rules; this was more than the total number for the last five years. The new companies raised NIS 3 billion in offerings, compared to the NIS 0.4 billion raised by new offerings in 2015-2016, and their total value is almost NIS 8 billion.
In a comparison with other stock exchanges around the world, the number of new offerings in relation to the market value of the listed companies is also noteworthy. From the aspect of this parameter, Tel Aviv comes out ahead of major stock exchanges, such as: London, NYSE and NASDAQ, and medium-sized stock exchanges, such as: Shanghai, Singapore, Hong Kong and Australia.
The Israeli bond market continues to display strength and depth, with debt of NIS 66 billion being raised for companies through issuances and private placements of bonds. More than 10% of this amount was raised by the 14 new companies that made debt issuances for the first time in 2017.
Mention should be made of the measures currently being taken by TASE to encourage additional technology companies to join TASE and to boost dual listing. Such measures include: the possibility of obtaining an opinion from ISS, instead of from Entropy; improving the attractiveness of the dual listing; the analysis project, which already covers 25 companies; and so forth. As a measure to encourage public participation and to enhance transparency, TASE has this year published a centralized offerings board. The second stage, which will be launched in 2018, is expected to make participation in an issuance easier and more convenient through a direct link to the offerings board.
In relation to the goal of enhancing liquidity – TASE is today reporting a 19% increase in the average daily trading volume of shares, which has reached NIS 1.1 billion, not including ETNs. Including ETNs, the volume amounts to NIS 1.4 billion, reflecting an 11% increase compared to the previous year. The indices reform, which took effect in February of this year, has led to numerous companies increasing their public holdings in order to be included in the indices and some 250 companies have increased the value of their public holdings in an amount of approx. NIS 27 billion. In November, public holdings (excluding those of Teva, Mylan and Perrigo) reached a record 55%, compared to 53% at the end of 2016 and just 46% at the end of 2014.
Knowing that a major factor in enhancing liquidity is to increase the trading volumes of sophisticated Israeli and international investors, TASE is pushing ahead with a number of significant measures to upgrade its technological infrastructure to international standards. Such measures include: shortening the physical distances to the trading systems at TASE; making co-location services available as is customary elsewhere in the world; and encouraging the activity of Israeli and international players using high-speed trading strategies.
Other measures in which progress has been made this year: the change in the membership model, which was implemented this year, and the provision of opportunities for new players and members to join TASE, as a result of the ownership restructuring, are also expected to contribute to enhancing TASE’s competitiveness and liquidity. It is also expected that, during 2018, some major international companies will become new members. In addition, the new costing model to stimulate trade in TA-35 derivatives, which was approved this year, is expected to go online in 2018.
This year, TASE also placed emphasis on expanding its basket of services. The measures taken to achieve this include setting up TASE’s nominee company that will provide listed companies – for the first time in Israel – with a full digital service with no need for physical certificates, at a cheaper cost and to the same standards as are customary worldwide. The nominee company will commence operations on January 1, 2018. TASE also is planning a reorganization of the securities lending market, which will concentrate all the activities needed for lending in a single place and will enable lending activities to be conducted in a single place and between all the main market players.
2017 Annual Review