Avissaror Shares Surge 14% at Tel Aviv IPO Amid Low Trading Volumes

Avissaror, an Israeli real estate development company, began trading on the Tel Aviv Stock Exchange on Wednesday. At the market open, its shares jumped approximately 14.5% above the effective IPO price, reaching 8.19 shekels per share. However, this sharp rise was driven by very low trading volumes, with only a few small transactions executed in the initial minutes of trading. As the day progressed, the share price gains moderated to around 6%, while trading volumes gradually increased but remained relatively low compared to typical market activity. The Tel Aviv Construction and Real Estate indices traded near their baseline levels during this period.

Founded in 1978, Avissaror primarily focuses on residential real estate development, historically centered in southern Israel. In recent years, the company expanded its operations to central Israel and also holds commercial real estate assets, including offices and retail spaces. The IPO was completed after the company adjusted its offering terms to reflect current market conditions. Initially, Avissaror aimed to raise about 660 million shekels at a pre-money valuation of roughly 2.6 billion shekels. However, due to a cooling local IPO market and broader market declines, the company lowered its valuation to about 2 billion shekels pre-money.

The offering, led by underwriters Lider and Ifex, raised approximately 530 million shekels from the public in exchange for about 21% of the company’s shares. Investors also received options to purchase additional shares at a price about 12% higher than the IPO price, granted without cost, effectively reducing the company’s capital raise valuation further. Post-IPO, Avissaror’s controlling shareholders retain shares valued at around 2 billion shekels. Chairman and CEO Eli Avissaror holds about 31% of shares, with directors Yitzhak and Yoram Avissaror holding approximately 20% and 17%, respectively, and Mordechai Avissaror owning about 10%.