The successful sale of the shares of Israel's largest bank highlights two important trends in the Israeli market: the government's policy of privatizing state holdings and the increasing participation of international investors in the Tel Aviv market.
"The Tel Aviv Stock Exchange is encouraged by the successful privatization of Bank Hapoalim, which attracted strong participation from both local and international investors," said TASE Managing Director, Saul Bronfeld. Mr. Bronfeld added that the Exchange hopes that the offering's success would pormpt the government to sell additional blocks of its remaining shares in Bank leumi and Discount Bank.
In recent years, the Israeli government has made a priority of divesting itself of its holdings in the stock market. The government's holdings as a percentage of the market capitalization on the TASE have dropped sharply from 16%, 11%, 9% and 8% in the years 1996 to 1999 respectively to only 6.2% after Bank Hapoalim's offering.
The Tel Aviv Stock Exchange, founded in 1953, is owned by its 28 member firms and is regulated by the Israel Securities Authority. The Exchange provides a highly advanced electronic trading system for shares, bonds, Treasury bills and derivatives. All trades are cleared and settled by the TASE Clearing House. The TASE offers international investors a combination of attractive investment opportunities and a full complement of market services, including an elaborate and user-friendly website at www.tase.co.il.
