Even with the turbulence on the markets, IPOs are still taking place on Wall Street, if at a much lower rate than a year ago. New companies are coming along from Israel as well, but, by contrast with the large flotations of 2021, the companies are smaller and the amounts raised more modest.
One such company is Actelis Networks, which completed a flotation this week on the Nasdaq Capital Market, where it is traded under the ticker ASNS. Since the flotation, the stock has managed to lose 50% of its value: the IPO was at $4 per share, valuing Actelis at nearly $70 million; the price is now $2, and the market cap $34.7 million.
Actelis Networks provides network solutions designed to make communications faster, safer and more efficient for IoT (Internet of things) applications. Among the markets it addresses are smart transport systems, the Federal and military markets in the US, airports, and smart cities.
Actelis Networks raised $16.9 million gross in the IPO, or $15.4 million net, after the underwriter, Boustead Securities, exercised its option to buy additional shares, and after the issue costs.
Actelis Networks is registered as a US company, but most of its employees (27 out of 44) are in Israel. The company’s founder and CEO is Tuvia Barlev, who founded it in 1998. According to IVC, the company raised $137 million in venture capital, its last round having taken place in 2016. No financial institutions or investment funds are now parties at interest in Actelis Networks; the main shareholder is Barlev, with a 9.6% stake.
According to the IPO prospectus, in 2021 Actelis Networks had revenue of $8.5 million, unchanged from 2020, but because of increased expenses its net loss widened from $1.5 million in 2020 to $5.3 million in 2021, and EBITDA, which was at breakeven in 2020, turned to a negative $1.1 million in 2021.
Published by Globes, Israel business news – en.globes.co.il – on May 18, 2022.
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