Ofer Nimrodi's move: Buying millions in shares following market collapse
Hachshara Urban Renewal took advantage of the recent stock price drop to conduct a series of market purchases, increasing its controlling stake in the urban renewal arm to 72.8%. How much did the company spend, and what is the current share price?
Shares of Hachshara HaYishuv Urban Renewal have experienced significant volatility in recent days. From the start of the month until yesterday, they recorded a 41% decline, with the company's market value shrinking by approximately 330 million shekels. Yesterday, the stock jumped by 41%, correcting the collapse which, according to capital market sources, stemmed from institutional investor activity (or the exercise of options following a recent fundraising round) combined with news of a financing agreement for a project in Kiryat Yam. The market value rose to 757 million shekels before trading opened this morning.
Meanwhile, Ofer Nimrodi’s company, Hachshara HaYishuv, continues to express absolute confidence in its residential and urban renewal arm. The controlling shareholder carried out a massive purchase of the subsidiary's shares during market trading.
Hachshara HaYishuv acquired 975,800 shares of Hachshara HaYishuv Urban Renewal across several transactions. The purchases were made at an average price of about 7.11 shekels per share (the price as of yesterday noon, before the subsequent surge), totaling approximately 6.95 million shekels. The share price this morning stands at 8.4 shekels.
Following this wave of purchases, the number of shares held by Hachshara HaYishuv in the subsidiary increased from 64.7 million to 65.68 million. Consequently, the controlling shareholder's stake in the capital and voting power of Hachshara HaYishuv Urban Renewal climbed from 71.73% to 72.81% (and about 70.47% on a fully diluted basis).
These open-market purchases indicate the company's trend of deepening its holdings in one of the group's central residential engines. This morning, the CEO of Hachshara Urban Renewal, Alex Mariash, reported that the company has sold 100 apartments within a short period.
«These data illustrate that even in a period when the housing market is dealing with quite a few challenges, people still want and need to buy apartments. When you offer a quality product, in an environment that is being renewed from the ground up and at a price that is accessible to the target audience, the demand comes. We believe that 'Ir Galim' will become one of the significant residential centers in the Krayot in the coming years, and we see the continued sales and the transition to the execution stage as a significant expression of confidence in the project and the path we are leading.»
