Insights & News /  Capital Markets

On 18 May 2015, Plus500 , an AIM listed company, announced that the UK Financial Conduct Authority had demanded a review of its Anti-Money Laundering financial sanction systems and other related regulatory controls. Plus500UK Limited was obliged to suspend all transactions for existing customers until additional AML procedures have been implemented. Not surprisingly, the share price of Plus500 dropped dramatically. Globes, a leading Israeli newspaper, published an article, including interviews with experts in the field of company listings in London, analyzing what happened to the successful online securities trading company. As an expert in IPO’s in Israel and London, Micky Barnea stated that: The Plus500 matter would make it difficult for other Israeli companies in the industry to list on the stock exchange, even though AIM is the friendliest Stock Exchange for this industry.

Does the new summary report which was published by the  Israel Securities Authority on the subjects of dividend distributions and buy-backs of shares, place high barriers to the ability of boards of directors to pass future resolutions? 

The Israeli corporate governance rules discourage technology companies from listing on the TASE. However, with some simple steps this all can be changed. Israel's position as the Startup Nation is reflected in the fact that multiple local technology companies are listed on the US and London Stock Exchanges. However, the TASE has never managed to make itself an attractive  target for Israeli high-tech companies. Thus, while many technology companies today prefer the purchase option of an initial public offering, such companies seeking to issue shares do not regard the TASE as an attractive or even relevant option. They prefer to turn to international exchanges.

Controlling shareholders and company managers complain about the stifling regulation, low turnover, high costs, the intervention in determining wages, and a negative image following the social protests. The leading newspaper, TheMarker, interviewed stock exchange experts, amongst them, Micky Barnea, to discuss why it happened, and how to stop the flight.

Israeli companies have rediscovered the AIM in London; in a conference titled, "Time for London IPO" held today, regarding the London Stock Exchange there were differing views concerning how beneficial the AIM is in reality. Micky Barnea, managing partner at Barnea, whose specialty is in London IPO's, claims that "unlike in Israel, in London it is the Board of Directors that has the last say as opposed to the shareholders as they do in Israel. Therefore the deriving power in the market is different and as such may not be suitable for companies with a single controlling shareholder, who would have less ability to intervene in decision-making and would lack influence over the structure of the Board of Directors." 

The firm represented AVGOL Industries 1953 Ltd. in their issuance of a new series of debentures (Series C) in the amount of NIS 502 million. This is one of the largest financing rounds made this year on the Tel Aviv Stock Exchange and its aims are to replace existing financial debt, and to finance ongoing investment activities and operations of the Company. AVGOL Industries is a global technology company, a world leader in the development, manufacture, and marketing of nonwoven fabrics, especially diapers and hygiene products, and its customers include large companies such as Procter Gamble and Kimberly-Clark. The Company's shares are traded on the Tel Aviv 100 index. To read more, please click here

Corporate Live wire held a roundtable with seven experts from around the world to discuss the latest changes and developments in capital markets in each expert's respective jurisdiction. To read more, please click here

This year’s summary of Maariv puts the spotlight on key legal developments in Israel, covering the following topics: Capital Markets (by Micky Barnea); Anti-Trust (by Zohar Lande); Constitutional Law; Criminal Law nfrastructure ; Tax and Money laudering

In recent years many kibbutz enterprises have grown from small manufacturers to international corporations. Echad Ha'am  magazine, by Globes, held a roundtable with six experts to discuss the latest changes and developments in the kibbutz sector. (attached, p.21)

There is a growing interest in raising funds online. This is owing to the fact that the Internet provides a wide exposure to diverse audiences. This creates an opportunity for small enterprises to be exposed to alternative and new financing options, that in the normal course would not be available to them. This, in turn, allows the enterprise to widen their circle of potential investors.