Total demand reached NIS 1.7 billion; The issue price is set at NIS 19.52 per share – slightly above the market price
Discount Bank tonight completed the issue of shares it announced yesterday. Total demand reached NIS 1.7 billion. The bank decided to raise NIS 1.424 billion at a price of NIS 19.52 per share.
The Discount share ended trading in Tel Aviv today with a 5.5% drop to NIS 19.51 – a price almost identical to the price in the raise. The offering was led by Discount Underwriting.
The Bank noted today that “the raising of capital was done to enable the Bank to continue its growth momentum and realize its existing significant potential, with an emphasis on the areas of the Bank’s strategic focus – mortgages and medium-sized businesses – while taking advantage of existing market opportunities.
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Uri Levin, CEO of Discount Bank
“The capital raising was done against the background of the sharp rise in yields that has taken place in recent months and the volatility in the markets, which embodies a significant increase in the probability of an increase in interest rates and their intensity.”
Uri Levin, CEO of the Discount Group: “The results of the offering are, first and foremost, a significant expression of confidence in Discount. In exchange for the issue, it will allow the bank to continue responsible and focused growth, while bringing a proper return to the shareholders, and leading the competition in the banking system. “