Investment House IBI Acts to issue its real estate financing arm, IBI Quality Credit Holdings, with the submission of a first draft prospectus to the Tel Aviv Stock Exchange. The company specializes in providing credit to private borrowers against real estate collateral, and is active in two main channels of activity: providing short-term credit and reverse mortgages.
The investment house plans to issue the financing company at a value of NIS 120 million before the money, and to raise NIS 30 million in the issue against 20% of the company’s shares. If the offering is completed successfully, IBI Quality will join about 20 companies Non-bank credit Which are already traded on the Tel Aviv Stock Exchange.
As of the end of 2021, the company manages a credit portfolio of NIS 506 million, and since its inception has granted credit in the amount of more than NIS 900 million, in more than 1,700 loans.
Short-term backed real estate loans
IBI Quality, managed by Eran Neta, was established in early 2016 under the name Quality Financial Engineering Entrepreneurship and Holdings. In 2019 the investment house acquired control of the company and in June 2021 it was renamed to the current one.
The company provides Among other things The various borrowers have a variety of credit solutions, through providing Short and long term loans and reverse mortgage which are backed by real estate collateral.
Real estate-backed loans are usually given for a short period of up to 24 months, usually to private clients. As of April 2021, the group operates in the field of reverse mortgage – an all-purpose loan given to private borrowers aged 60 and over, for an indefinite period. At any point in time or up to 12 months after the death of the borrower.
Currently, most of the company’s revenues are due to the opening fees of a portfolio that it charges
And management fees and success fees. These amounted to NIS 16 million last year (compared with NIS 18.5 million in 2010), while net profit reached NIS 5.9 million (compared with NIS 6.5 million in the previous year). The equity before the issue is only NIS 4.2 million.
As of the end of last year, the company’s credit fund manages NIS 425 million, with most of the credit portfolio being in short-term repayments of up to two years, and 100% of the loans backed by real estate. At the end of 2021, the managed portfolio accumulated NIS 81 million. The company reports an expectation of accelerated growth and an increase of 120-180 million in the reverse mortgage portfolio in 2022.
The offering will be led by the underwriting company Poalim IBI Underwriting and Epsilon Underwriting.