Nova raised $ 175 million in convertible bonds and the target...

Manufacturer of conductors and measuring instruments Nova Yesterday, it completed the first bond issue in its history. The company raised $ 175 million in zero-rate convertible bonds from American and Israeli institutional entities. Bank of America and Citibank led the offering.

Read more in Calcalist:

The company originally planned to raise $ 150 million, but demand was five times higher, so it was decided to increase the amount raised by 16%. The amount raised will cost up to $ 200 million, if the underwriters exercise the option given to purchase another $ 25 million in bonds in the next two weeks.

Nova measurement solution Photo: PR

The maturity of the bonds in 5 years will be possible at a price of $ 74.6 per share, which expresses a premium of 27.5% on the price at the start of trading on the day of the raising and sets the company a target of $ 2.1 billion.

Nova, which is traded on the Tel Aviv and NASDAQ stock exchanges at a value of $ 1.64 billion, has risen 6.4% since announcing the results of the IPO today, completing a 48% increase since the beginning of the year, placing it sixth in the Tel Aviv-35 index in terms of return.

What do you think of Nova Stock:

Strong buy Purchase wait on sale Strong sale

Nova noted that it expects record revenue for the third quarter of the year, which will be in the range of $ 70-68 million. This is compared to its previous forecast, which was in the range of $ 66-58 million. This updated forecast is also above the market forecast, which puts Nova’s revenues for the third quarter in the range of $ 63.6-62 million.

The company expects adjusted earnings per share for that period to be in the range of 56-51 cents per share. This forecast is higher than the lower and upper threshold of the previous forecast range by 50% and 19%, respectively (47-34 cents per share). It also exceeds the market forecast for earnings of 41-45 cents per share.

CEO Nova CEO Eitan Oppenheim. Expected revenue for the third quarter

Nova is not the only Israeli to issue convertible bonds on Wall Street. The solar systems company Solaredge raised $ 550 million three weeks ago, leaving an additional 15% option for underwriters.

Dror David, Nova’s CFO, told L.A.CalcalistNova doubles every six years and has aggressive growth plans. Some of the growth engines also include acquisitions and market opportunities. The company’s growth in the past year has raised the level of interest of American entities, and about 100 entities have submitted bids.

“We chose a convertible bond tool because we found that the conditions in it were best both in terms of the lowest dilution for shareholders, and in terms of the best cost of capital. Apparently, the bond is at 0% interest. Only the buyer decides at what price and when to enter, but given the zero interest rate, and the conversion of the bond at 27.5% higher than the share price at the time of raising, buyers can be assumed to believe in strategic plans; After all, only if the price surpasses the conversion price will they benefit. “

Revenue in the second quarter increased 22.3% to $ 62.5 million compared to $ 51.1 million in the second quarter of 2019. Adjusted earnings were $ 13.7 million or 48 cents per share compared to $ 13.4 million or 47 cents per share in the same period last year. Of analysts’ expectations, 48-42 cents a share.

Source link by,7340,L-3860110,00.html

*The article has been translated based on the content of Source link by,7340,L-3860110,00.html
. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!

These were the details of the news Nova raised $ 175 million in convertible bonds and the target... for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Former Canada PM Mulroney dies at 84
NEXT Italy foreign minister urges ‘immediate ceasefire’ in Gaza