Two Former Employees Become Major Shareholders in New Investment House

Pasternak Shaham, a new investment house, has successfully raised approximately 70 million shekels in its initial public offering, valuing the company at around 350 million shekels post-money. This marks the first new investment house to list on the Tel Aviv Stock Exchange in nearly a decade, ending a long dry spell despite a recent surge in IPOs.

The company was founded in 2010 by Eran Pasternak, who now serves as Chairman, and Shi Shaham, who is the CEO. Both were previously senior employees in the capital market, including at Tamir Fishman, where Pasternak was a deputy CEO and Shaham an investment manager. Following the IPO, Pasternak holds 48% of the shares, valued at approximately 167 million shekels, while Shaham holds 32%, worth about 112 million shekels. Their combined holdings are now worth nearly 300 million shekels.

Several prominent figures participated in the offering, including insurance billionaire Yitzhak Ouz, Chairman of Phoenix Agencies, who acquired a significant stake but is not expected to become a controlling shareholder. Two other insurance executives also invested without gaining significant interest. The holding company Alad, managed by Professor Yitzhak Soari, also purchased a substantial portion of the shares. It is estimated that these investors, along with other insurance companies like Clal and Hachshara, and several hedge funds, acquired most of the shares in the IPO.

Pasternak Shaham's core businesses include managing investment portfolios and mutual funds, with mutual funds accounting for about 82% of its revenue, managing approximately 6 billion shekels. Its investment management division handles securities portfolios and financial assets worth about 3.3 billion shekels for its clients. The company plans to use the IPO funds to acquire 50% of an insurance agency, aiming to expand into pension, provident, and life insurance sectors, creating synergies and a natural hedge for its existing operations.

The article also briefly mentions another company, Amram et Nidam, an urban renewal firm, which is raising about 75 million shekels through a bond issuance. This move has already resulted in a significant accounting gain for its major shareholder, Amram Avraham, a large construction company, due to a revaluation of Amram et Nidam's assets.