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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Gilat | GLT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 87.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 87.00 |
| Top Posts |
|---|
Posted at 02/6/2006 08:13 by m.t.glass This morning tipped by Investors Chronicle as a buy |
Posted at 02/6/2006 08:10 by m.t.glass Got itself a buy rec in Investors Chronicle today I gather |
Posted at 19/8/2005 15:57 by m.t.glass $2.5m to raise $8m? Sources: Gilat Satcom's IPO expenses should have been $1.5 million at most. Golan Fridenfeld 11 Aug 05 12:22 Gilat Satcom Ltd. (AIM: GLT), controlled by World Group Holdings (TASE: WRGR) subsidiary Satcom Systems (TASE: STCM), raised $8 million last week within a relatively short time on the London Alternative Investment Market (AIM), and its managers deserve compliments for it. At the same time, a document submitted by World Group to the Tel Aviv Stock Exchange indicates that the company's expenses incurred in the issue totaled $2.5 million 31% of the amount raised. In all the conversations I had with various entities with experience in issues in London, I was invariably told that this amount is unusual. No way of looking at the structure of expenses for the issues yields a figure of $2.5 million. Fixed expenses for an issue in London (payments to accountants, lawyers, underwriters, investor relations costs, etc.) come to $800,000-1 million. Expenses that vary with the size of the issue are 5-7%. In Gilat Satcom's case, this comes to another $500,000, giving total expenses of at most $1.5 million for an issue of this type, assuming that there were no expenses that deviated from the usual level. The question is how Gilat Satcom incurred such high issue expenses; Gilat Satcom controlling shareholder Zvi Barinboim has the answers. Gilat Satcom raised $8 million at a company value of $30 million, before money. Before the issue, in order to boost its chances of success, Gilat Satcom recruited a big gun - former Israel Prime Minister Ehud Barak and gave him the title of "non-executive president." Barak received monthly management fees and options for 5% of the company's capital. Satcom Systems, which still owns 76.1% of Gilat Satcom after the issue, is due to post a NIS 9 million capital gain on the issue. The company stated, "In deciding to float Gilat Satcom on a stock exchange in London, the directors of Satcom Systems Ltd. and Gilat Satcom Ltd. also took into account the costs involved in raising capital on a foreign stock exchange. These costs are higher than capital-raising costs in Israel for the following reasons, among others: A company making an issue in London has to pay its Israeli lawyers, and also British lawyers. The company had to pay its local accountants, the accountants drawing up the economic reports for the underwriter, and British accountants. In addition, because an issue of shares was involved, the company had to pay the underwriter a success commission (underwriting commission) amounting to 5-8% of the issue proceeds. All the expenses for service providers in the UK are denoted in British pounds, which makes the process more expensive. "The companies do not regard Gilat Satcom's issue in London as the end of a business process, but as a stage in the development of Gilat Satcom into a global communications provider. The capital raised will enable the company to accelerate its organic growth. The fact that the company's share is listed for trading in London will enable the company to position itself as a global communications company, help it compete in large tenders in the countries in which it operates, and facilitate future processes of mergers and acquisitions in its business environment, of which consolidation is a prominent feature." Satcom Systems provides local and international communications services, based primarily on satellite communications. In April 2004, World Group, controlled by Barinboim, acquired 52% of Satcom Systems through SPL Software in which World Group has a 65% stake. Satcom Systems was formerly called Gilat Satcom. Following the acquisition, the company's owners and management formulated a strategic plan, while solving the company's financial problems. In the first quarter of 2005, the company revenue totaled NIS 22.2 million, compared with NIS 16.6 million in the corresponding quarter last year. Net profit grew from NIS 2 million in the first quarter of 2004 to NIS 3 million in the first quarter this year. Since last September, Satcom Systems has acquired Gaya Com, a private Israeli company that has an agreement with international company Iridium Satellite. Iridium provides mobile telephone services through its global satellite network. Satcom also acquired IP Planet Network, which was controlled by Eurocom Communications. Published by Globes [online] - www.globes.co.il - on August 11, 2005 |
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