Avisror shares jump on stock exchange amid minimal trading volumes
Real estate developer Avisror began trading on the Tel Aviv Stock Exchange after raising 530 million shekels at a 2 billion shekel valuation. Shares surged 14.5% at the opening on individual trades, with gains moderating to 6% later in the day.
Real estate development company Avisror began trading today, Wednesday, on the Tel Aviv Stock Exchange. At the opening, the stock jumped approximately 14.5% above the offering price, though this sharp rise was driven by extremely meager trading volumes.
In the first minutes of the session, only a few individual transactions were executed. One such trade, worth 16.38 shekels, was carried out at 819 agorot per share—14.5% higher than the effective offering price. Despite the negligible monetary volume, the lack of significant share supply meant that even a small transaction could dictate the last traded price and trigger a double-digit increase.
As the trading day progressed, the gains moderated alongside a gradual increase in volume, though activity remained relatively low. At the time of writing, the stock is trading up by about 6%, while the TA Construction and TA Real Estate indices remain near their base levels.
Founded in 1978, Avisror operates primarily in residential development. While its activity was focused on the southern region for years, the company has recently expanded into the center of the country and maintains a portfolio of income-producing real estate, including office and commercial spaces.
Avisror completed its IPO after adjusting terms to market realities. In its initial prospectus two months ago, the company aimed to raise 660 million shekels at a 2.6 billion shekel pre-money valuation. However, the cooling of the local IPO market forced the company to compromise, finalizing the offering at a valuation of approximately 2 billion shekels.
Led by underwriters Leader and Apex, the company raised 530 million shekels in exchange for roughly 21% of its shares. Investors also received options to purchase additional shares at a price 12% higher than the offering price. Since these options were granted without consideration, the effective valuation is even lower than the official offering price.
Despite the lower-than-expected valuation, the controlling shareholders retain significant stakes. Eli Avisror, chairman and CEO, holds about 31% of the shares, while directors Yitzhak and Yoram Avisror hold 20% and 17% respectively, and Mordechai Avisror holds about 10%.
