Stark Power Raises Up to 145 Million Shekels Through Institutional Option Allocation

Stark Power, an energy company founded this year by former executives of Nofar Energy and Enlight, has secured 62 million shekels through an option allocation to several institutional investors led by Migdal Insurance. The fundraising is expected to increase by an additional 3 million shekels in the coming weeks and could grow by another 80 million shekels over three years, potentially reaching a total of 145 million shekels.

The company plans to allocate two packages of 6.2 million options each to investors, subject to shareholder approval. The first package can be exercised within two weeks of allocation at a strike price of 0.5 shekels per option, potentially raising about 3 million shekels immediately. The second package will be exercisable over three years at a strike price of 13 shekels per option, which could bring in an additional 80 million shekels if fully exercised. Stark Power’s stock closed at 11.2 shekels, meaning the first package is already deep in the money, while the second package’s strike price is about 16% above the current share price.

Migdal Insurance is the main institutional participant, investing 38 million shekels immediately with a potential additional 51 million shekels if options are fully exercised. Other participants include pension and provident funds from Meur and Harel, and hedge fund Alpha, each investing 6.2 million shekels immediately with possible further investments of 8.4 million shekels. Hedge fund Noked also joined with a smaller investment. Full exercise of options would give Migdal a 6.25% stake, making it a significant shareholder.

These investors became stakeholders following a previous capital raise in March, when Stark Power raised 140 million shekels through shares and options, with a potential increase of 215 million shekels if options are fully exercised. The company was founded by former Nofar Energy CEOs Nadav Tana and Shahar Gershon, along with Enlight co-founder Tzafrir Yoeli, former Enlight USA CEO Michael Avidan, and former Enlight CFO Yosef Levkovich. Stark Power went public in late March after merging with the shell company A.A.A.M.A.SH. In May, it signed an agreement to acquire a US company specializing in gas-powered data centers and power plants for 50 million dollars.