New Capital Raising Channels to Be Made Available on the Tel Aviv Stock Exchange
The Israel Securities Authority has approved expanding the trading activity conducted on the trading platform for institutional investors of the Tel Aviv Stock Exchange (referred to as TACT), so that additional types of securities may be issued and traded on it.
Currently, it is only possible to raise capital on the TACT through debt instruments (bonds and corporate securities). This new initiative will enable the issuance and trading of additional types of securities (such as shares) for corporations active in the fields of high-tech and real estate for investment abroad.
The initiative holds many advantages, such as making the TACT more accessible to corporations seeking to raise capital, diversifying the types of securities traded on the TACT, enhancing transparency of securities’ prices, and allowing automatic clearing through the Tel Aviv Stock Exchange.
The Israel Securities Authority anticipates this initiative will attract Israeli startups and high-tech companies to the Israeli capital market, and will therefore increase institutional investment in this sector.