Kibbutz Hazor's "Omen" to go Public
Omen the high pressure die casting company from Kibbutz
Hazor will be the fifth kibbutz company this year to issue shares on the Stock
The company has released a draft prospectus, and aims to issue shares at a market
value of 200 million shekels. The proceeds from the listing will be paid to the
Tene Group, which holds a 28% stake in the company.
The proposed listing is being timed to match the favorable market conditions
and the high liquidity of the financial institutions.
As part of the stock market flotation, Tene will sell most of its holdings in
Omen through an offer for sale to the public of 20% -25% of the capital of the
The draft prospectus shows that the Omen expanded its operations in Europe
(Portugal and Russia), in order to increase its revenue in a short time. The draft
also revealed that the company's turnover in 2013 amounted to 155 million
shekels, reflecting an increase of 2.5% over 2012 revenues. Annual profit
jumped by 27% and reached 10 million. In the first quarter of 2014, income
increased by 10% to 43 million, and net income grew by 24% to 3.6 million.
It is estimated that the bulk of the improvement in sales was due to increased
sales to one of its significant customers (Dana UK - supplier of engineering
products for the automotive industry), and that the improvement in
profitability came as a result of the increase in revenues, together with the
increased efficiency of production factors. In 2014, the company expects the revenue
to reach 171 million with a net profit of 14 million.
Omen's main activity focuses on producing castings of aluminum alloy sections
and high pressure brass foundry products, especially for the automotive
industry. The company exports most of its products abroad, especially to Europe
(80%), and its activities are influenced by the state of the global automotive
industry. Additionally it has manufacturing operations for components of fire