Scoop Metals Chairman Becomes Paper Billionaire on Stock Surge

Shmuel Shilo, controlling shareholder and chairman of the metals company Scoop, has become a paper billionaire due to a significant increase in the company's stock price. Over the past year, Scoop's share price has surged by approximately 105%, bringing its market capitalization close to its all-time high of around 3.8 billion shekels. This rise has boosted the value of Shilo's 40% stake to over 1.5 billion shekels. Despite the stock's appreciation, Shilo increased his holdings slightly in the past year, purchasing shares worth about 5 million shekels.

Scoop, founded in 1980, imports and markets raw materials, primarily aluminum, steel, nickel, and engineering plastics, to industrial clients worldwide. Earlier this year, the company expanded into distributing steel and metal products for the oil and gas industry by acquiring the U.S.-based North American Metals (NAM) for approximately $23 million, with potential additional payments based on performance.

The stock's ascent is attributed to strong financial results. In the first half of the year, Scoop reported revenues of about 1.27 billion shekels, a 23% increase year-over-year, driven by higher demand and a shift in sales mix. The acquired NAM subsidiary contributed about 105 million shekels in revenue, tripling its performance from the previous year. Net profit for the first half rose by 31.5% to approximately 103 million shekels, also benefiting from improved gross and operating profit margins.

International operations accounted for about 75% of Scoop's first-half revenue, with its U.S. and South Korean subsidiary Hadco contributing nearly 60% and growing by 38%. European subsidiaries in Poland, the Czech Republic, and Romania saw a 13% revenue increase, while a smaller operation in India experienced a nearly 72% revenue jump. Scoop plans to expand into Southeast Asia by 2027.

Institutional investors, including Phoenix Insurance, Menora, Migdal, and Harel, along with investment house Meitav, hold substantial stakes in Scoop. These institutions benefited significantly from a private placement last year, which saw the stock price increase by about 90% since then, outperforming the Tel Aviv 35 and 90 indices.