IBI Quality Credit Holdings, the non-bank financing arm of IBI Investment House, submitted a draft prospectus tonight (Monday) ahead of the company’s issuance. IBI Quality 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.
Globes has learned that 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, so that the issued share will stand at 20% of the company. If the offering is completed, IBI Quality will join about 20 non-bank credit companies that 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. Since its inception, the company has provided credit in the amount of more than NIS 900 million, which is spread over more than 1,700 loans.
The company was established and incorporated in Israel in February 2016 under the name Quality Financial Engineering Entrepreneurship and Holdings Ltd. In 2019 the investment house acquired control of the company and in June 2021 the company was renamed to its current name. Value of the company.
Quality has a broad and unique infrastructure for accelerating growth that includes hundreds of mortgage and credit advisors and accessibility to institutional entities and qualified clients that constitute the sources of financing. The company’s revenues in 2021 amounted to NIS 18 million and the net profit was NIS 6 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 loans backed by real estate.
In May 2021, the company began operating in the field of reverse mortgages and by the end of the year it had accumulated a managed portfolio of 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 accompanied by the underwriting company Poalim IBI Underwriting and Epsilon Underwriting, which will serve as a pricing underwriter on behalf of Gur Nabel of the law firm of Goldfarb Seligman.