- A base price that reflects the issuance price enables investors to follow, for the first time, the performance of the new securities and assesses the performance of the share in real time
Following the recent approval by the Israel Securities Authority (ISA), starting on June 13, 2021 The Tel-Aviv Stock Exchange (TASE) will determine the base price as the issuance price. This move is intended to enable investors to start following the value of the security and assess the performance of the share in real time.
The current wave of IPOs on TASE has underscored the need for a technological and methodological solution that better reflects the performance of the new securities that are traded on TASE. This will enable investors to make investment decisions based on the actual change in the share price since the date of the IPO.
The change will allow the calculation of yield from the first day of trading and will serve as an important tool for researchers and investors seeking to calculate the yield of the share based on its value. This move will allow for a transparent calculation of the yield on the security as well as a better understanding of the economic opportunity embodied in the purchase or sale of the new security.
