In July 2018, the prominent institutional bodies that were willing to take part in the issue and already injected tens of millions of shekels at its institutional stage, set a minimum price of NIS 700 million – a gap of 7% of the minimum price of NIS 750 million. (And compared to an initial value of NIS 1 billion).
The failure of Praszmarkt’s IPO was part of a wave of IPO cancellations that were promoted on the TASE during the second half of 2018, against the background of challenging market conditions, mainly due to large divestitures in the mutual funds. This wave led to a number of recruitment campaigns that were already in relatively advanced stages, after the publication of draft prospectus, presentations and a round show with the institutional bodies. Among them were the Internet company Zap, the do-it-yourself network Ace Auto Depot, the Celtic technology company and Shasha.
The draft prospectus published by Prasmaract prior to its issuance revealed that the chain has 31 supermarket branches throughout the country, with a total area of more than 22,000 square meters, each of which ranges in the range of 3,500-3,000 square meters. According to the Company, most of the branches are “neighborhood” branches located in neighborhoods and city centers, with a total of more than 1,500 employees. Shlomi Amir serves as CEO of the chain and his brother Yossi as chairman.
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The 2017 data presented by Praszmarket reflect a gross margin of almost 34% and an operating profit of 7.7% – higher than its competitors. In the first quarter of 2018, the trend is similar, with more than 40% of revenues reaching NIS 248 million (annual sales of NIS 1 billion), and a 75% jump in net profit to NIS 14 million.
Their activities in the field of retail marketing began in 1995 by means of a private company that held two supermarkets in Kiryat Bialik and Haifa. The second was in early 2017, with the acquisition of 13 branches of the Lahav warehouse chain for NIS 85 million from the Dan bus company, which acquired the chain from businessman Eli Lahav in 2010.