June 16, 2020

Supergas Completed the Offering: It Raised NIS 270 million

June 16, 2020

The Elco-controlled gasmarketing company raised the money at a company value of NIS 1.23 billion; Elcoacquired Supergas six months ago for NIS 770 million; The company's shares willbe traded starting next week on the Tel Aviv Stock Exchange as part of the TA90 index

Golan Hazani

The Supergas offering wassuccessfully completed yesterday (Monday). The Elco-controlled company of thebrothers Danny and Mikey Salkind raised NIS 270 million at a company pre-money valueof NIS 962 million and a NIS 1.232 billion value after the issuance. Elcoacquired the gas company six months ago for NIS 770 million. The Supergasshares are expected to start trading next week on the Tel Aviv Stock Exchangeas part of the TA 90 index.

The demands for the offering wasNIS 420 million, and the value includes options from Leumi Partners andPhoenix, which hold options for 20% of the company's shares following a loan itgranted to it. The offering was underwritten by Epsilon Underwriting, Poalim IBIand Leumi Partners.

Supergas was established in 1953and its private customers exceed 400,000, along with 5,000 business andinstitutional customers.

Alongside the activities ofmarketing and distribution of domestic gas, and the expanding activities ofmarketing and distribution of natural gas to companies, the company has startedto operate in the last two years in the field of natural gas-based powerplants. The company is currently setting up five sites and has signed and isconducting negotiations covering power supply agreements in the scope of about 46MW.  The company has set itself a targetof reaching stations with 100-70 MW in the coming years.

Supergas ended 2019 with a(proforma) revenue of approximately NIS 577 million, with net profit of NIS 67million and EBITDA (operating profit) of NIS 154 million. The company has adividend distribution policy of at least 40% of its net income each year. Inthe first quarter of 2020, the company posted revenues of NIS 188 million,along with a net profit of NIS 29 million and EBITDA of approximately NIS 56.8million.

Kfir Navon, CEO of Supergas:"We thank the investing public for expressing their confidence in thesuccessful offering. The money raised in offering will be used, among otherthings, to consolidate and expand the company's growth engines and improve itsfinancial strength. Supergas enjoys a broad customer base, nationwidedeployment, and steady cash flow, and we will work to ensure its continuedgrowth.”

"Alongside operations in thedomestic gas field, we are currently developing our growth engines for years tocome, most notably co-generation stations, six of which are currently invarious stages of construction, in addition to supply of natural gas to the transportationand business sectors. We believe that these growth engines will contribute tocreate significant value for the company over the next few years."

The original Hebrew version of this article can be found here.

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