On 21.10.18, the Tel Aviv Stock Exchange (TASE) released a proposal to introduce a series of changes to its vetting fees for new listings. The Israeli Association of Publicly Traded Companies petitioned TASE to lower the listing costs for newly - listed companies to encourage new listings and to lower costs for companies already trading on TASE. The proposed changes are the result of an on-going dialogue between TASE and the Association to improve services provided TASE-listed companies.
Over the past few years, significant changes have been introduced to the vetting and listing process undertaken by TASE. The existing schedule of vetting fees does not necessarily reflect the costs involved in the process, particularly in light of the value TASE places in encouraging new listings. Accordingly, TASE has published a series of proposed reductions and changes in the vetting fee schedule for public comment:
• A reduction of vetting fees for newly listed companies from NIS 23,217 to NIS 10,000. This reduction is part of TASE’s ongoing efforts to minimize listing costs for these, particularly small-cap, companies as much as possible.
• Within the framework of legislative amendments initiated by the Israel Securities Authority in 2014, shelf registrations have been simplified and streamlined. The amended law no longer requires the disclosure of certain details regarding the offered securities or their terms in the shelf prospectus and requirements regarding the disclosure the manner the securities are being offered have been lifted as well. These details are included for the first time in the statement filed prior to a specific shelf offering takedown. This amendment brought about a significant reduction in the scope of the vetting involved in approving a shelf prospectus, and increased vetting requirements of takedown offering statements. In light of this, TASE seeks to entirely abolish the vetting fees for publishing a shelf prospectus, which to date come to NIS 11,500.Instead, companies will pay NIS 10,000 (as opposed to NIS 6,5999 currently charged) for a shelf offering The updated fees reflect the current scope of vetting involved at each stage of the process.
TASE also proposes to reduce vetting fees for dedicated private placements to employees (ESOPs) to NIS 2,000, as opposed to the NIS 6,599 charged for regular private placements. The use of stock and option placements as a form of employee remuneration is common and constitutes one of the most significant values arising from a company’s public listing.
The public are invited to submit comments on the proposal on MAYA website until December 12, 2018 and after consideration of the comments received, the proposals will be brought to the board of directors for approval.
