Slushy machines and high-tech scales head for ASX in Israeli IPO comeback
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Two more Israeli floats are on the way to the ASX in a sign that entrepreneurs from the Middle East nation are again favouring a journey down-under.
Some 17 Israeli companies have listed in Australia in the past three years (see table below) and there are another six in the pipeline according to the ASX.
Though there was a drop-off in 2018 when as many as ten delayed or killed off local listing plans.
This week slushy-machine maker Nice-Vend and high-tech scale-seller Shekel Brainweigh issued prospectuses to raise $7.5 million and $10.15 million respectively, from Australian investors.
They will be the second and third Israeli listings this year, after drone-parachute maker Parazero (ASX:PRZ) in June.
Israeli blockchain company Security Matters is also is preparing an IPO to raise up to $6.5 million ahead of a September listing.
Slushies on the ASX
Nice-Vend makes and sells vending machines — branded “quinzee machines” — that make slushies (or frozen soft drinks).
The quinzee can make “an unprecedented variety of flavours” including drinks from protein shakes to tea.
Nice-Vend has some big corporations circling to white-label the high-tech slushy machine and proprietary flavours, and reckon a countertop model, due for sale about two years after the IPO, is going to be a hit with hotels, restaurants and caterers, CEO Ehud Klier says in the prospectus.
They’ve even got US Department of Agriculture approval to roll them out to schools to serve sugar-free drinks, and have the go-ahead from “several” schools in Florida to start installing.
It did only have $85,000 left at the end of 2017, however.
The offer is price at 20c and is open from September 3 to 10 ahead of an October 2 listing.
Shekel Brainweigh is making new weighing technologies.
It has been in the weighing business for decades, and even has its tech incorporated into incubators for premature babies.
Now it’s added AI and is creating a ‘product aware’ scale that can work out what is on it, how much is remaining elsewhere in a store, and how often it’s being moved or sold.
And, in a blow to supermarket self-checkout thieves everywhere, they say it will be able to distinguish whether that’s an onion or an $8 avocado you’ve just set down.
Shekel Brainweigh made a $1.9 million profit last year, and $18.2 million in revenue.
It is carrying $4.6 million in debt however and had $1.7 million in cash at the end of 2017.
The 35c-per-share offer is open from September 24 to October 12. The expected listing date is October 26.
What happened to the Israelis?
There are at least 17 Israeli companies on the ASX — including HearMeOut (ASX:HMO) which was forced to admit in June that it couldn’t survive.
An ASX spokesperson told Stockhead that Israel is still a target market for the exchange and they’re talking to several prospects.
“Generally, we work with them to ensure they come to market at the right time (ie not too soon).
“The pipeline remains strong, with around six Israeli companies potentially listing in the next 12 to 18 months,” he said.
And there could be more except for a recent strengthening of regulatory focus on overseas companies listing on ASX, says HLB Mann Judd partner and IPO specialist Marcus Ohm.
The technology sector was also trending towards demonstrating greater value before coming to market, Mr Ohm said.
Here’s a list of Israeli companies that have joined the ASX in recent years:
|ASX code||Name||Focus||Listing date||Money raised|
|AKP||Audio Pixel||Audio technology||2010||-|
|DTZ||Dotz Nano||Anti-counterfeit tech||2015||$6m|
|GMV||G Medical Innovations||Health monitoring device||2017||$12m|
|HMO||Hearmeout (suspended)||Social media||2016||$6.5m|
|ROO||Roots Sustainable Agricultural Tech||Agricultural Technology||2017||$5m|
|SAS||Sky And Space Global||Satellite communications||2016||$7m|
|WBT||Weebit Nano||Computer chips||2016||$5m|
Off the rails
After a bonanza year in 2016 when eight Israeli companies jumped over to Australia, only five of an anticipated 15 listed in 2017.
Six decided to raise pre-IPO funding instead of hitting the ASX.
Companies that promised IPOs last year included cybersecurity companies Votiro and CyberGym, Eco Wave Power, and pre-colonoscopy bowel prep company HyGieaCare.
In July last year Votiro raised $11.2 million in pre-IPO funding from investors, with a promise to list by the end of 2017.
Votiro did not respond to Stockhead’s queries before deadline.
CyberGym arrived with a bang in Melbourne around the same time last year pitching a $30 million IPO.
Eco Wave Power raised $3 million in Australia by August last year, with a view to listing on the ASX in 2018.
Eco founder Inna Braverman told Stockhead they are “currently looking at the best timing for the listing”.
“EWP is negotiating a potential joint venture deal with a local Australian strategic partner, with the goal of having local presence and we are also in advanced negotiations with a number of ports for our first power station in Australia,” she said.
In March this year Israel-based trading firm Invesus delayed plans for a $50 million to $100 million IPO for up to a year, saying it wanted to gain more licences in other jurisdictions.
And HyGieaCare, the only company talking about an IPO in 2017 to actually produce a prospectus, delayed its IPO closing date until November last year before quietly dropping off the ASX’s upcoming floats list.