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This morning, June 27, the management of Delek Royalties opened the trading to mark the listing of the company’s shares on TASE.
Delek Royalties was established by Delek Energy to realize its holdings in the super royalties from the Tamar and Dalit natural gas reservoirs, and the proceeds from the IPO are to be used to pay for the rights to the royalties. The company has raised NIS 130 million from the issue of 60% of its share capital, and NIS 425 million from a bonds issue.
Delek Royalties becomes the ninth company to make an IPO on TASE since the start of 2018. The new companies have raised NIS 1.6 billion, and their market cap currently stands at NIS 8.4 billion.
The company joins the oil and natural gas exploration sector, which includes 18 companies and partnerships with a market cap of NIS 33 billion. The company’s shares are expected to join the TA-Growth Index and the TA-Oil & Gas Index in the semi-annual update on August 2. The bond series will be added to the Tel Bond-Dollar Index when the Index is launched in July.
Assi Bartfeld, Chairman of Delek Royalties: “The gas and oil industry is one of the most prominent and interesting industries in the capital market today, and I’m certain that this will continue in the future. Delek Royalties is a young company and is still small, but with the right strategy it will grow, develop and progress to acquire royalties from additional reservoirs, becoming a strong, independent company.”
Hani Shitrit Bach, EVP and Head of TASE’s Economics Department: “I'm delighted to welcome Delek Royalties, a company that is founded on royalties from Israel’s gas reservoirs, to the family of public companies listed on TASE. The company has adopted a dividend policy of distributing the majority of its profits, making it an income-generating investment tool for investors in the gas royalties sector. The oil and gas exploration industry is an example of an industry that has developed and grown thanks to the ability to raise funds from the public on the Israeli stock exchange, and now the Israeli economy and the investor public are enjoying the fruits of the discovery of the gas reservoirs.”
Pictured from right to left:
Amnon Neubach, Chairman of TASE’s Board of Directors; Shlomo Landau, Director of Delek Royalties; Rami Armon, Director of Delek Royalties; Barak Mashraki, CFO of the Delek Group; Haim Kugman, CPA for Delek Royalties; Meir Menachem, CEO and Director of Delek Royalties; Assi Bartfeld, Chairman of Delek Royalties; Adv. Yael Giron, Attorney for Delek Royalties; Leora Pratt Levin, Chief Legal Counsel for the Delek Group; Hani Shitrit Bach, EVP and Head of TASE’s Economics Department
Photo credit: Omer Messinger, for no financial consideration.
