Second U-turn: Electra Real Estate completes previously cancelled capital raise at an 18% discount

After previously announcing the cancellation of its offering due to "market conditions" and a significant drop in its stock price, Electra Real Estate—a company investing in rental housing complexes in the USA and controlled by the Zalkind brothers' Elco (51.1%)—has reversed its decision. Today, Friday, the company reported that it raised 150 million shekels through a private placement of approximately 6% of its shares to the insurance company Menora Mivtachim and other investors who will not become interested parties in the company.

The placement price stood at 35 shekels per share, 18% lower than the closing price on July 20, the day the company announced its intention to proceed with the capital raise.

This price is 13% lower than the floor price set by Electra Real Estate in its original report, where the company stated it would raise funds "at a price not lower than 40.14 shekels per share."

At the same time, the company allocated options without consideration at an exercise price of 37.5 shekels, compared to the 46.97 shekels set in the initial announcement. According to the company, if these options are exercised, it will receive an additional 80 million shekels.

As noted, Electra Real Estate operates investment funds in housing complexes in the USA. These funds pay management fees to the company as the general partner, as well as success fees following project realization and revaluation profits from asset appreciation.

The company currently manages assets totaling 9.2 billion dollars and holds equity of 263 million dollars. However, the stock has lost about 25% of its value since the beginning of the year, largely against the backdrop of a weaker dollar, as the company's operations are based in the USA and its revenues are denominated in dollars.