Why Do Israeli Tech Companies Do IPOs in the US..and Not On The Israeli Stock Market ?
Updated: Sep 1, 2021
An article in Israel's business newspaper Globes explains why Israeli tech companies choose to list on US stock exchanges...and why it is not likely to change.
From the article :
Despite the surprising success of dozens of technology IPOs in Tel Aviv, for the time being it seems that the largest and fastest growing companies that go public (such as monday.com and SentinelOne, which made IPOs on Wall Street, and ironSource and Payoneer, which were merged into SPACs) still do not regard the Tel Aviv Stock Exchange as an option, Commentary - Omri Cohen
There is good reason for Israeli companies to prefer the US stock market. Being listed on a stock exchange in New York, whether it is Nasdaq or the New York Stock Exchange (the differences between which have become less pronounced in the past decade). Being listed on these markets gives them international repute, and makes them more transparent and more accessible to foreign investors. Thanks to the filing of reports in English, they also become more transparent for suppliers and customers, which is highly important for companies whose business is on the Internet.
Companies listed in the US are also more likely to win international media coverage, which is highly valuable for Israeli technology companies. The US capital market also gives access to investors from all over the world, and thus to raise sums that would generally be too much for the Israeli market.straightaway look overseas....
The Tel Aviv Stock Exchange is thus left with international technology companies that do not meet Wall Street standards. This was true in the past, it is true in the present, and it will probably remain true in the future.