Founder of Israeli Freight Tech Firm Praitus Takes Activist Role Against Its Management
Israeli freight technology company Praitus, listed on Nasdaq with a market value of $72 million, has seen its stock plummet 86% since going public in 2023. Dr. Zvi Schreiber, the company's founder and former CEO, recently disclosed a 6.1% stake and expressed dissatisfaction with Praitus's performance and strategic direction. He outlined plans to influence the company’s future, signaling an unusual activist investor move by a founder.
Praitus offers an automated pricing system for freight transport, operating a digital marketplace for comparing shipping rates and managing logistics. The company went public via a SPAC merger in early 2023, initially valued at around $500 million post-money, but has since lost significant value. After hitting an all-time low in March 2024, the stock has modestly recovered by 15.7%.
Schreiber founded Praitus in 2012 and stepped down as CEO in December 2023 to pursue other initiatives, remaining on the board initially. He was succeeded by Pablo Pinius, the former CFO, in March 2024. However, Schreiber announced his intention to resign from the board two months later. Despite this, he continues to engage with the board, management, and shareholders to advocate for a return to a high-growth strategy focused on the platform, along with leadership and board changes.
Schreiber’s current stake is valued at approximately $4.4 million. Major shareholders include British investment firm M&G (18%), Singapore’s Asian Gateway Investments (9.2%), Qatar Airways’ investment arm (8.7%), and Aleph Fund (6.9%). He plans to propose board composition changes at the upcoming general meeting and is reportedly in discussions with third parties, including potential strategic or financial buyers, regarding the company’s future and possible transactions.
This development highlights the rare scenario of a company founder actively challenging the management and board of his own publicly traded firm to reshape its strategic path and enhance shareholder value.