tapuz logo 88.
(photo credit: )
The Israel Securities Authority is putting the screws on companies that breach quiet periods by talking to press.
Just as the ISA on Wednesday gave its clearance to Internet portal Tapuz to proceed with its proposed initial public offering (IPO) after a delay due to leaks to the press about the offering, Leader Capital Markets received word that its public listing also would be postponed for the same reason.
"We have made it very clear to the companies what is permitted of them and they still provided details of their respective offerings designed to increase their values," said ISA spokesman Ori Katzir.
Earlier this week, the ISA again publicized its guidelines outlining what is not permitted to be publicized in the period before an IPO, known as a "quiet period." It emphasized that publishing data concerning the intended offering to the public, which is not according to the prospectus received by the ISA, is a violation of the law.
Financial services company Leader said it received notification from the ISA that its IPO would be delayed due to an article that was published in the Hebrew press providing details of the offering.
In response to the ISA decision, Leader said Wednesday that the article in question was published without its knowledge and that it did not participate in any aspect of the article.
When its offering is cleared, Leader intends to sell 2.17 million regular shares and 108,500 special shares to the public at a price of between NIS 295 and NIS 305 per share.
Tapuz, which has just completed its two week postponement, may now proceed with the IPO in which it plans to raise between NIS 24 million and NIS 30m.