Finance committee approves underwriting reform

Reform meat to ease local activities in the primary market and encourage the entry of foreign participants.

By SHARON WROBEL
February 22, 2007 21:04

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The Knesset Finance Committee this week approved the long-awaited changes to the underwriting method in Israel, which will ease local activities in the primary market and encourage the entry of foreign participants. The enhanced method, proposed by the Israel Securities Authority, will allow underwriters to allocate securities to institutional investors in a public offering as is the case in the US and not only through a Dutch auction - a procedure that uses a bidding process to find an optimal market price for a stock - but also according to their own discretion. The new practice will be limited to offerings to institutional investors. After days of negotiations in an effort to solve disagreements between the banks and the brokers, the Committee agreed to pass the new regulations for a period of only two years instead of the five demanded by the ISA. The approved regulations prohibit the underwriter, affiliated with a banking group, to act as a pricing underwriter (one who regularly participates in fixing the issuing price), in issues of companies whose overall obligation to the underwriter's group is above 15% of the overall balance of the issuing company and not 20% as suggested by the ISA.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS