TEL AVIV, Israel, March 11, 2015 /PRNewswire/ — The market cap of listed companies, whose stocks were traded on the Tel Aviv Stock Exchange (TASE) at the end of 2014, amounted to NIS 778 billion – an 11% rise, compared with the end of 2013, in which market cap totaled NIS 703 billion.

The increase in the market cap of listed companies derives from the rise in stock prices in 2014, in which the General Shares Index grew by 11.5%.

* Some of the increase stems from the listing of the ICL stock at the New York Stock Exchange.

Despite the slight decrease in 2014 in the weight of TA-25 Index stocks in the total trade on TASE, the weight of the Index’s stocks in the total market cap increased from 67% last year to 74%. Such increase derives from the sharp rise in the market cap of pharma companies Teva and Perrigo. whereas the aggregate market cap of the other Index companies remained practically unchanged.

On the other hand, the weight of the companies, whose stocks were traded in the TA-75 Index at the end of 2014, in the total market cap declined to 16%, compared with 21% at the end of 2013, concurrently with a decrease of 10% in this index during 2014; despite their share in the total trade increasing from 20% in 2013 to 24% in 2014.

Additional Contributing Factors to the Market Cap Increase in 2014 are:

• Capital raised in secondary offerings and private placements of stocks and warrants. Secondary offerings and private placements amounted in 2014 to NIS 11 billion (including capital raised abroad).

• Initial Public offerings (IPOs). 2014 saw the introduction of five stocks into the trade – Shapir Engineering, Inrom Construction, Ashtrom Group, Mediterranean Towers and Skyline. whose market cap at the end of 2014 totaled NIS 4.4 billion (NIS 2.1 thereof representing the market cap of Shapir Engineering).
• The listing of IDB Development stocks. In May 2014, approximately five years after their delisting by way of a tender offer, the stocks of IDB Development were listed in the framework of the closing of the settlement in IDB Holdings. The company’s market cap at the end of 2014 totaled NIS 584 million.
• The listing of a dual-listed company. Plaza Centers. whose market cap at the end of the year amounted to NIS 146 million.
• Warrants Exercised to Shares. Totaled NIS 392 million in 2014.

Conversely, several factors led to the setoff of the increase in the companies’ market cap:

• The delisting of 40 stocks from TASE. the value of which stocks, at the beginning of 2014, totaled NIS 9 billion.

• Tender offers. 6 companies whose stocks were delisted as a result of tender offers, the value of which amounted to NIS 1.1 billion in early-2014. The prominent ones among these are: Kardan Vehicle and Ashlad (whose market cap was NIS 467 million and NIS 241 million, respectively), third-tier companies, whose stocks were delisted as a result of the Concentration Law.
• Mergers. 8 companies whose stocks were delisted as a result of merger and acquisition by another company, the value of which amounted to NIS 7.2 billion in early-2014. The prominent ones among these are: Given Imaging (a NIS 3.3 billion market cap), which was sold by Discount Investment to an international company, and Koor. which merged with Discount Investment (a NIS 3.2 billion market cap).
• Delisting of a dual-listed company : Top Image. whose market cap totaled NIS 236 million in early-2014, discontinued trading as a result of its request to delist from TASE.
• Maintenance Rules. The stocks of 21 companies were delisted due to failure to comply with the Maintenance Rules, with a total value of NIS 401 million.
• Settlement/liquidation. 4 companies whose stocks were delisted following a debt restructuring settlement or the appointment of a liquidator due to their falling into difficulties.

Sectorial Division of Listed Companies