Tzabar Solar Plans Stock Market Debut With Debt and Equity Offerings
Translated & summarized from Calcalist by baba
Tzabar Solar, an Israeli renewable energy company, is planning to list on the Tel Aviv Stock Exchange, first issuing NIS 200 million in bonds and then shares valued at NIS 300-400 million. The company, which installs solar systems in Israel and operates in Spain, previously attempted an IPO in 2021. Tzabar Solar also faced a NIS 850,000 penalty for unauthorized panel upgrades.
The story in 6 lines · by baba
- Tzabar Solar plans to raise NIS 200 million in bonds and then issue shares on the Tel Aviv Stock Exchange.
- The company's equity offering is expected to value Tzabar Solar between NIS 300 million and NIS 400 million.
- Tzabar Solar installs solar systems on agricultural structures and operates in Spain and the West Bank.
- In 2021, the company was ordered to repay NIS 850,000 for unauthorized solar panel upgrades.
- Previous IPO plans in 2021 did not materialize.
- Key shareholders include Guy Tzabar, Daniel Tzabar, Ariel Even, Boaz Schwartz, Roi Ramati, Moti Friedman, and Clal Insurance.
Renewable energy firm Tzabar Solar is preparing to go public on the Tel Aviv Stock Exchange. The company intends to raise approximately NIS 200 million through a bond offering, followed by an equity offering that values the company between NIS 300 million and NIS 400 million. The fundraising effort will be led by Lider.
Tzabar Solar, founded in 2009 and based in Rosh Ha'ayin, is owned by several partners, including CEO Guy Tzabar (6.7%), Daniel Tzabar (18.8%), Chairman Ariel Even (20.5%), Deputy Chairman Boaz Schwartz (20.5%), Roi Ramati (18.8%), and Deputy CEO Moti Friedman (3.3%). Clal Insurance holds a 11.4% stake, acquired five years ago.
In 2021, Tzabar Solar explored a similar IPO plan, aiming to raise NIS 50-80 million at a valuation of NIS 300-350 million, but the plan did not materialize. The company's primary business involves installing solar systems on agricultural structures in kibbutzim and moshavim across Israel. It also develops solar fences, agrivoltaic systems, energy storage, wind turbines, floating systems, rooftop installations, and ground-mounted solar fields.
Internationally, Tzabar Solar operates in Spain, with projects in Leon, Valencia, Toledo, and Gran Canaria, being the sole renewable energy company active in the Canary Islands. Its Spanish operations total 170 megawatts, with 140 megawatts located in the northern Maragato region. The company has also been prominent for constructing solar farms in the West Bank, operating mainly in Judea and Samaria and the Jordan Valley, in cooperation with the Amona settlement movement. These operations include wind turbine farms ranging from 20 to 50 megawatts. Additionally, Tzabar Solar has implemented projects with tracking systems on water reservoirs in northern Israel to enhance solar energy utilization.
Last year, Migdal Insurance provided Tzabar Solar with a NIS 400 million credit line to finance 44 solar energy projects and 11 energy storage facilities. The majority of the loan is allocated to the solar projects, with the remainder for storage facilities, with terms ranging from 13 to 24 years.
Financials released in 2021 for a potential IPO showed 2020 revenues of NIS 23 million, up from NIS 19.5 million in 2019, with a net loss of NIS 2.43 million compared to a NIS 562,000 loss in 2019. Projections for 2024 indicated revenues of NIS 182 million and EBITDA of NIS 135 million.
In September, Tzabar Solar was ordered to repay NIS 850,000 to the state after the Israel Electricity Authority found one of its facilities produced electricity at a higher output than permitted. The company admitted that in 2021, it replaced over 2,300 faulty solar panels with new ones totaling 567 kilowatts without prior approval or notification to the authority.