Israel’s IPO scene is set for success with a number of tech offerings in the pipeline. The past year has been a breakthrough period for this start-up nation, with huge demand creating a snowballing effect in the IPO market, the Israeli IPO scene is providing a smorgasbord of investment opportunities to investors who are able to access these opportunities.
With one of the Pengana Alpha Israel Fund’s Pre-IPO investments (GenCell Energy) successfully listing in November this year, the Fund has additionally secured two similar deals, one of which will list this month (medical device/robotics) and the other in the first quarter of 2021 (cleantech robotics). Pre-IPO investments are investments, or commitments to invest, in private companies made prior to publicly listing.
Given the Alpha Israel team’s unique positioning in the market, due to its experience in public and private equity markets and a strategic holding in one of the country’s leading underwriters, the investment team is being shown an increased flow of opportunities to access pre-IPO stakes in high-quality businesses with fantastic long-term potential.
Pre-IPO investments have the possibility of earning returns that are in excess of investing in listed stocks due to a potential uplift resulting from an IPO. The Pengana Alpha Israel Fund believe that the expanding opportunity set and the potential for outsized returns for their investors warrants an increase to the Fund’s exposure to Pre-IPO opportunities, and are therefore increasing the limit to 20% of the Fund (previously capped at 5%).
This initial Pre-IPO deal is only the beginning for the Pengana Alpha Israel Fund. With a focus on adopting more cutting-edge tech companies, the fund promises investors diversification into a unique and promising market.
Established in 2011, GenCell develops and markets ammonia and hydrogen fuel cells. Using the ultra-reliable and exhaust-free technology that powered the American and Russian space programs, Gencell provides affordable, clean backup power for telecom, homeland security, healthcare and automotive industries.
The Fund bought GenCell at a cost price of 8.76NIS. On November 24th, GenCell’s first day of trading, the share price opened at 10.16NIS, and has now risen to 13.00NIS (as at 2 December 2020).
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