Ministry Of Economy And Industry And The Tel-Aviv Stock Exchange Are Launching A New Index: TA-Industrials - The Index Comprises More Than 80 Industrial Companies From A Range Of Israeli Economic Sectors

The board of directors of The Tel-Aviv Stock Exchange (TASE) approved (March 29, 2018) the launch of a new equity index in conjunction with the Ministry of Economy and Industry.   The new index - TA-Industrials Index - comprises more than 80 listed companies from various industry sectors across the board and will facilitate investment in the growth opportunities inherent in Israeli industry. The Ministry of Economy and Industry and TASE expect the index to provide private industrial companies with a further incentive to consider non-banking and non-governmental financing channels in order to attract investors through IPO on the Israeli stock exchange.

As mentioned, the new index is composed of the shares of more than 80 companies, having an overall market value in excess of a quarter of a trillion shekels (based on the simulation conducted on March 3rd , 2018 – see Appendix A)  from a broad range of industrial sectors, including: pharmaceuticals, electronics and optics, metals and metal products, defense, fashion and clothing. In order to increase exposure to small and medium industrial companies and in order to achieve a broad diversification, a maximum weight cap of 3% has been set for a single share.

The new index faithfully reflects the image of the State of Israel as a nation of technology and innovation, and is characterized by the prevalence of high-tech companies, which also includes manufacturing companies from the technology and biomed sectors. The weight in the index of shares from the general “high-tech” sector is close to 50% (28% technology companies and 20% biomed companies – total weight 48%). The weight of traditional industrial companies is 52%.

The TA-Industrials Index will be launched at a joint conference of the Ministry of Economy and Industry and TASE to be held on April 25, at which will be presented other tools aimed at promoting Israeli industry and leveraging investment on TASE in order to attract investors and to expand the economic activity of the industrial companies. The Record Date for determining the composition of the index will be end of trading day on April 12, 2018.

 Minister of Economy and Industry, Eli Cohen, said: “Israeli industry, which is characterized by groundbreaking innovation, is not just a source of national pride but is also a worthwhile investment. The index’s launch constitutes an investment channel for both domestic and international investors that are interested in being exposed to the Israeli industry. Against the background of the economic returns and the greater importance of technology, Israeli creativity constitutes a focal point for attracting investors thereby making it even more worthwhile for companies to make offerings on TASE and will provide an additional incentive for raising funds and making issuances, which will be translated into investment in the economy and into supporting growth”.

TASE’s CEO, Ittai Ben-Zeev, said: “We are proud to be launching, together with the Ministry of Economy and Industry, this new index, which reflects the strength of the Israel industry and which will enable the investing public to participate in the success of the Israeli economy. I pay tribute to the cooperation with the Minister of Economy and Industry and we hope that the launch of the index will encourage Israeli companies, both from the traditional industrial sector and from the high-tech and biomed sector, to make an IPO's on TASE. The new index also answers market needs and the demand for additional base assets for investment, as well as providing an opportunity for exposure to small and medium companies too. We hope that the Ministry of Economy and Industry will continue to promote Israeli industry, for the benefit of the investing public and the Israeli economy”.

The Ministry of Economy and Industry works to promote Israeli industry by means of a variety of tools and measures. Industry, in all its various forms, constitutes an economic growth engine by positioning itself to take advantage of the plentiful opportunities presented by global markets, as well as providing high-quality employment opportunities for a variety of population segments. Industry’s contribution to Israel’s business product amounts to some 18%, and employ’s some 11% of the country’s work force.

Tel Aviv Stock Exchange (TASE), which was established in 1953, fulfills an important function in Israel’s growth and development and constitutes an integral and significant component of the Israeli economy. It serves as a major growth engine for businesses, in that it enables Israeli companies to raise equity and debt from the public. TASE is the “home bias” of the Israeli investing public, allowing trading to be conducted conveniently and in local currency, under one roof, in a diverse range of investment products that align with investors’ needs. In addition, TASE operates as an advanced, computerized trading arm for buying and selling securities. Currently, the shares of 452 companies are listed on TASE. In 2017, a record number of 17 new companies made IPOs on TASE, which was higher than the number of offerings made all together in the preceding five years.