Europe to accept Israeli prospectus filing

Move means Israeli companies will be able to easily list on European stock exchanges.

July 13, 2015 23:02
1 minute read.
Tel Aviv stock exchange

Tel Aviv stock exchange. (photo credit: REUTERS)

Europe will recognizes prospectuses filed through Israel’s regulatory system, the Israel Securities Authority announced Monday. That means Israeli companies will be able to easily list on European stock exchanges.

“Recognizing Israeli regulation gives Israeli companies access to new markets and enables the creation of an additional circle of foreign investors, as well foreign issuers to Israel,” ISA chairman Shmuel Hauser said.

Earlier in the month, the European Securities and Markets Authority (ESMA) issued a new opinion on Israel’s regulatory framework, replacing a previous opinion from March 2011.

Some additional disclosures may be required.

For example, small companies (defined as companies that meet two of three conditions: having fewer than 250 employees, with balance sheets are below €43 million, or annual turnover under €50m.) will have different requirements than others.

The ISA has been searching for ways to make it more attractive for companies to issue their stocks and bonds on Israeli markets. Making dual listing simpler is a step in that direction because it would let local companies go public in Israel and then very easily raise further funds abroad.

But there is much work to do. In its annual report, the ISA said 30 percent of companies trading on the Tel Aviv Stock Exchange wished to delist, and some 40 companies quit trading there last year.

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