The new law enables companies that are traded either on Nasdaq, Amex or the NYSE to dual-list on the TASE with no additional regulatory requirements and at no cost. It provides significant benefits for the companies as well as for Israeli and European investors.
The Tel Aviv Stock Exchange has launched an intensive road show to promote dual-listing. It is targeting over 100 Israeli companies that are presently traded only in the U.S. The Exchange’s top officials have met directly with corporate executives to brief them on the benefits of dual-listing.
Saul Bronfeld, TASE’s Managing Director said “The Exchange looks forward to providing a new and valuable trading arena for the Israeli companies traded on Wall Street. We invite them to follow Magic and dual-list in Tel Aviv.” The Exchange expects that other U.S.-traded companies will dual-list soon.
The key to the new law is that U.S.-listed companies simply need to follow the reporting requirements of the U.S. Securities and Exchange Commission. To meet the Israeli dual- listing law’s requirements, they file copies of the U.S. documents with the Israeli Securities Authority. A company may dual-list as soon as it files a short, technical, registration application with the TASE.
The benefits of dual-listing for companies include a new trading arena and the opportunity to reach new local and European investors. For investors, the advantages include a continuous trading day for the dual-listed stocks from 9:45 to 11 p.m., Israel time as well as an efficient, low-cost order execution on the advanced Tel Aviv Continuous Trading (TACT) system.
