Orpak Industries is due to carry out an initial public offering on the Alternative Investment Market of the London Stock Exchange next week in a listing that will raise $25m. for the company and its shareholders.
Bnei Brak-based Orpak, which develops automated refueling and payment systems for fuel stations, has placed 6.2 million shares with institutional investors at 140 pence each, thereby raising $15m. Its owners sold $10m. worth of shares.
Following the listing, Orpak will have 33.2 million shares and a market capitalization of $80m. Rapak Technologies, which owns 71% of the company, will see its holding diluted to 58% even though it is not selling any shares. However, it expects to make a capital gain of NIS 35m. and it will receive its share of a NIS 47m. dividend that Orpak will distribute to existing shareholders. Shares are due to begin trading next Thursday.
Orpak said it intends to use the money raised from the IPO for research and development and for expansion into new markets.
"The new funds give us the financial resources and profile to take full advantage of a $1 billion market opportunity for advanced fuel payment systems for oil companies, fuel station operators and vehicle fleet owners worldwide," said chief executive Hayim Kohen.
Nine-month net profit doubled to NIS 15.4m. from NIS 7.8m. and revenue rose to NIS 109.7m. from NIS 78.4m., and the company forecast that full year net profit would jump 62% to $4.7m. and that revenue would rise 42% to $34.6m.
Orpak's FuelOmat products allow motorists to refuel their cars and then drive away, leaving the forecourt system and the oil company to automatically bill the drivers or the company that manages the fleet.
The systems and products have been used by more than 6,000 fuel stations and 1.2 million vehicles in 30 countries around the world. Its customers include major oil companies such as Shell, Total/Elf and Texaco, as well as firms as diverse as IBM, Motorola and Safeway.
Seymour Pierce is the nominated adviser and stock broker in the IPO, CE Unterberg, Towbin is the US placing agent and Avalon Capital is an adviser.