Lev Leviev
Erez Meltzer
photo: Vardi Cahana
Africa Israel raises $1.4 billion in London IPO
AFI Development, held by Africa Israel becomes fifth largest real estate company in Europe in biggest Israeli IPO ever
AFI Development, a subsidiary of Africa Israel Investments Group had great success in London stock exchange. The largest IPO (Initial Public Offering) ever by an Israeli company raised 1.4 billion dollars. Valued at $5.9 billion prior to the IPO, its value now is $7.3 billion. The IPO was led by Erez Meltzer, president and CEO of Africa Israel.
Africa Israel started gearing up for the IPO in late 2006, eventually creating a subsidiary worth nearly as much as its primary holder is in the Tel Aviv Stock Exchange. Following the IPO, Africa Israel will hold 71 percent of AFI Development, and it's partner, Alex Chaladi, 9.75 percent.
Africa Israel stands to report NIS 3.4 billion in capital gain in its second quarterly, as result of the IPO. At 14 dollars a share, over 10 percent of the money came from Russia, and over 50 percent from various European sources.
This IPO makes AFI Development the fifth largest real estate company in Europe, in what was the largest capital raising by a European real estate company ever. The second largest capital raising, of $1.2 billion, was by a German real estate company.
"This is testimony of the faith the international markets have in Africa Israel and in AFI Development ", said Chairman of Africa Israel, Lev Leviev Thursday. I believe the company's management will take us forward."
