Palo Alto Enters Flagship Indices of the Tel Aviv Stock Exchange
The cyber giant's stock will begin trading at the end of the trading day in the flagship indices of the Tel Aviv Stock Exchange, with a weight cap of 5%. Its entry will be gradual, and at the same time, the weight cap for Ormat was reduced from 4%.
Palo Alto Networks stock will begin trading today (Thursday) at the end of the trading day in the flagship indices of the Tel Aviv Stock Exchange, TA-35 and TA-125, as part of the exchange's quarterly parameter update. In accordance with index rules, the cumulative weight of foreign stocks with an affinity to the same country in the TA-35 and TA-125 indices cannot exceed 8%. Due to this limitation, the index committee determined that the weight cap for Palo Alto in the TA-35 index will be 5%.
At the same time, the weight cap for Ormat stock, an American company already included in the indices, was reduced from 4% to 3%. In practice, Ormat's weight in the index currently stands at about 2.7%. In the TA-125 index, Palo Alto's weight cap will be 5%, which is the maximum weight cap for a stock in this index. Without the aggregate weight limit, Palo Alto could have received a weight cap of 7% in the TA-35 index, the maximum rate allowed for a single stock in the index.
However, even the set weight will not come into effect fully today. According to exchange rules, the weight of a new stock in the indices increases gradually. In the first stage, Palo Alto's actual weight will be 25% of its calculated weight. In the next index update, expected in November, it will rise to 50%, and only in the third update after inclusion will its full weight in the indices be reflected.
Palo Alto Networks stated:
"Our mission at Palo Alto Networks is to be the natural partner in the field of information security and to protect the digital lifestyle of all of us. Our secondary listing on the Tel Aviv Stock Exchange reflects our belief in Israeli talent and innovation, which are at the global forefront. We are proud to officially join the exchange's flagship indices."
The company further stated:
"As an organization employing thousands of excellent professionals in Israel, we are proud to be part of the local technological ecosystem. This milestone strengthens our long-term commitment to continue investing in Israel, expanding our presence here, and deepening the partnership with the Israeli innovation community as part of shaping the future of cyber."
