Transcript Slide 1

April 2, 2008
U.S. Listing Opportunities for
Israeli Companies
Presented by
Guy Cohen
Executive Director,
Head of Israeli Investment Banking, Oppenheimer
IPO Market Overview
Market Snapshot
Capital Markets Performance
Source: FactSet, Bloomberg as of 3/28/08
3
Market Snapshot (cont.)
Economic/ Sentiment Indicators
Source: FactSet, Bloomberg as of 3/28/08
4
ECM Activity
Number of Deals
IPOs (1)
0
Week of 3/24
2
4
6
8
10
12
14
16
0
2
0
Week of 3/17
10
12
14
16
0
2
6
8
10
12
14
16
0
2
4
3
6
8
10
12
14
16
4
2
6
4
6
1
4
3
3
0
4
Converts(3)
5
2
Week of 2/18
8
0
0
Week of 2/25
6
4
1
Week of 3/3
4
9
2
Week of 3/10
P.I.P.E.s(2)
Follow-ons
7
1
5
2
Week of 3/24
2,526
17,945
22
276
0
0
Week of 3/3
108
1,170
99
Week of 2/18
122
105
10
00
15
00
20
00
25
00
30
00
35
00
40
00
220
440
700
256
Week of 2/25 386
0
50
0
96
63
1,361
10
00
15
00
20
00
25
00
30
00
35
00
40
00
0
50
0
10
00
15
00
20
00
25
00
30
00
35
00
40
00
0
50
0
0
Week of 3/17
Week of 3/10
10
00
15
00
20
00
25
00
30
00
35
00
40
00
0
0
50
0
Amount ($M)
1,740
220
545
Source: Dealogic and Sagient Research as of 3/28/08
Deal values exclude overallotment; Excludes closed-end funds and non-SPAC unit offerings
(1) Includes SPACs
(2) ≥ $20M and excludes capital injections
(3) Includes publicly marketed capital injections
5
IPO Issuance
 Pace of Issuance
 In 2008, 10 IPOs priced to raise $18.7B(1) compared to 41 IPOs priced in Q107 that raised
$8.7 billion
 In 2007, 205 IPOs priced to raise $43.3B
 Recent IPOs – Visa, Cardionet, Heritage-Crystal Clean
 The current IPO Backlog has approximately 93 transactions that are expected to
raise $18.4B
Sector Breakdown ($62.1B)(2)
30
20,000.0
24
16,000.0
18
12,000.0
12
8,000.0
6
4,000.0
0
Real Estate
3%
Media
8%
Finance
43%
Telecom
5%
Consumer
6%
0.0
Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar07 07 07 07 07 07 07 07 07 07 07 07 08 08 08
Market Caps < $250M
Market Caps ≥ $250M
Healthcare
7%
Technology
13%
$ Amount (M)
# of Deals
Monthly Issuance
$ Amount (M)
Energy & Utility
6%
Industrial
9%
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, market caps ≥ $50M
Excludes SPACs
(1) Including the IPO of VISA Inc. that raised $17.9 billion
(2) Sector breakdown by $ amount
6
IPO Performance
 Since 2007, 27.9% of IPOs priced above their initial filing ranges
 IPOs have performed well on their first day of trading, up an average of 12.9%
 With the recent volatility in the markets, current performance has suffered; since
2007, IPOs are down an average of 11.0% from their offer prices
Offer Price Relative to Filing Range
Share Offered Relative to Shares Filed
Source: Dealogic as of 3/28/08, Deal Value ≥ $20M, Excludes SPAC
7
IPO Sizing Analysis
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs
8
IPO Sizing Analysis (cont.)
2007-08 YTD IPOs
# of Deals by Market Cap
$ Amount by Market Cap
Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs
9
2007- 2008 YTD Israeli IPOs in the US
Pricing
Date
10/30/07
7/25/07
7/18/07
5/23/07
4/4/07
3/14/07
2/26/07
2/7/07
2/5/07
Issuer Name
Ticker
Symbol
012 Smile.Communications Ltd
Voltaire Ltd
Limco-Piedmont Inc
STARLIMS Technologies Ltd
Veraz Networks Inc
BigBand Networks Inc
Rosetta Genomics Ltd
Mellanox Technologies Ltd
Cellcom Israel Ltd
SMLC
VOLT
LIMC
LIMS
VRAZ
BBND
ROSG
MLNX
CEL
Number of Deals:
Total Amount Raised ($B):
9
0.9
Specific Industry
%
Deal
Offer
% Change Change % Change
Value
Market
Price
Price Initial Price Price Offer /
Excl Ovl Cap ($M)
(US$)
/ Offer (1) Offer / 1 Current
($M)
Day
Telecommunications-Telephone
Technology-Services
Transportation-Airports
Technology-Software
Technology-Services
Technology-Networks
Healthcare-Drugs/Pharmaceuticals
Technology-Semiconductors
Telecommunications-Wireless/Cellular
12.00
9.00
11.00
13.50
8.00
13.00
7.00
17.00
20.00
80.1
51.9
48.4
28.4
72.0
139.1
26.3
102.0
400.0
304.3
184.3
140.4
126.4
316.5
742.6
78.8
506.6
1,570.5
(20.0)
(30.8)
4.8
(1.5)
(27.3)
18.2
(41.7)
30.8
17.7
0.0
(7.4)
20.9
0.2
(2.5)
30.8
4.6
17.7
(2.3)
(13.8)
(38.9)
(45.5)
(44.5)
(66.6)
(53.5)
(41.4)
(20.5)
66.5
High
Mean
Median
Low
20.00
12.28
12.00
7.00
400.0
105.3
72.0
26.3
1,570.5
441.2
304.3
78.8
30.8
(5.5)
(1.5)
(41.7)
30.8
6.9
0.2
(7.4)
66.5
(28.7)
(41.4)
(66.6)
Source: Dealogic as of 3/24/08, Shaded deals represent Oppenheimer bookrun offerings
(includes Oppenheimer plus CIBC World Markets)
Deal Value ≥$20M and excludes overallotment
(1) IPO % Change Price Initial / Offer is calculated from mid-point of filing range to offer price
10
Recent IPO Filings – SPAC dominance
SPAC Fillings:
 Majority of recent filings
 NASDAQ and NYSE
proposed rule changes
 Bulge Bracket sponsored
SPACs
 Investor appetite
changes
Source: Dealogic as of 3/28/08
Deal Value ≥ $20M
Excludes closed-end funds and non-SPAC unit offerings
* represents SPAC
11
TM&T IPOs in Registration
Filing
Date
Issuer Name
Ticker
Symbol
Specific Industry
Current
Deal Value
($M)
Issuer Business Description
3/10/08
Eyeblaster Inc
EYEB
New Media-Software
115.0
2/14/08
IDS Group Inc
IDSI
Technology-Software
86.3
A provider of software services.
57.5
A residential solar energy integrator.
2/7/08
Real Goods Solar Inc
RSOL
Technology-Alternative Energy
1/28/08
Current Media Inc
CRTM
Media-Cable Television
11/1/08
Valor Computerized Systems Ltd
VLOR
1/11/08
LogMeIn Inc
1/10/08
Produces rich media ad technology and digital marketing solutions
via a web dashboard.
100.0
Operators of cable television network.
Technology-Software
80.5
Develops software for circuit boards.
LOGM
Technology-Software
86.3
A provider of on-demand, remote-connectivity solutions to small
and medium-sized businesses.
Intelius Inc
INTL
New Media-Services
143.8
A commerce company that provides intelligence services to
consumers over the internet.
IPC Systems Holdings Corp
IPCA
Telecommunications-Telephone
400.0
A provider of communications services.
12/26/07
Source Photonics Inc
SRSE
Technology-Semiconductors
130.0
Provides optical communication products used in
telecommunication systems and data communications networks.
12/21/07
Anda Networks Inc
ANDA
Technology-Networks
86.3
12/18/07
GlassHouse Technologies Inc
GLAS
Technology-Software
100.0
Provides enterprise storage services, backup and recovery,
business continuity, and program management
12/14/07
Infonxx Inc
-
Technology-Services
250.0
An information services provider.
12/14/07
ExactTarget Inc
EXTG
Technology-Software
86.3
12/11/07
Digital Domain Inc
DTWO
Media-Film
100.0
Full-service digital studio and production company.
11/30/07
Broadview Networks Holdings Inc
Telecommunications-Services
287.5
Provider of high-speed Internet access and services
High
Mean
Median
Low
400.0
140.6
100.0
57.5
1/4/08
-
Developer of a network access platform for communication service
providers to deliver data services.
Provider of on-demand email marketing software solutions.
Note: Deals filed within last 120 days
Source: Dealogic as of 3/28/08, Deal Value ≥ $20M
12
Healthcare IPOs in Registration
Filing
Date
Issuer Name
Ticker
Symbol
Specific Industry
Current
Deal Value
($M)
Issuer Business Description
3/20/08
Zogenix Inc
ZGNX
HealthcareDrugs/Pharmaceuticals
86.3
Specialty pharmaceutical company.
3/13/08
Salient Surgical Technologies Inc
SLNT
Healthcare-Instruments
86.3
Medical technology company that develops and markets surgical
products.
3/12/08
CyDex Pharmaceuticals Inc
CYDX
HealthcareDrugs/Pharmaceuticals
50.0
Pharmaceutical company focused on the development and
commercialization of drugs.
Bostwick Laboratories Inc
BOST
Healthcare-Miscellaneous
Services
1/25/08
Phenomix Corp
PHMX
HealthcareDrugs/Pharmaceuticals
1/23/08
Accuro Healthcare Solutions Inc
ACCU
Healthcare-Services
1/22/08
Cardiovascular Systems Inc
3/7/08
100.0
86.3
143.8
Laboratory focused on the diagnosis of cancer.
Drug discovery firm investigating new treatments for immune
system, central nervous system, and metabolic diseases.
Provider of comprehensive solutions that enhance revenue and
improve financial, clinical and logistical operational efficiencies for
healthcare providers.
CSII
Healthcare-Instruments
86.3
Medical device development company that has completed designs,
develops, testing, and markets clinical devices for the treatment of
cardiovascular disease.
A clinical-stage biopharmaceutical company.
1/9/08
Bayhill Therapeutics Inc
BHTX
HealthcareDrugs/Pharmaceuticals
86.3
1/9/08
Omeros Corp
OMER
HealthcareDrugs/Pharmaceuticals
115.0
Biopharmaceutical company advancing a pipeline of product
candidates for use in orthopedics, rheumatology, urology,
cardiovascular medicine, general surgery and pain management.
12/31/07
Alma Lasers Ltd
ALMA
Healthcare-Instruments
86.3
Developer, manufacturer and marketer of laser, light and
radiofrequency-based systems for the aesthetic medical market.
12/19/07
Prometheus Laboratories Inc
-
HealthcareDrugs/Pharmaceuticals
100.0
High
Mean
Median
Low
143.8
93.3
86.3
50.0
Offers pharmaceutical products, pharmacogenetic testing,
therapeutic drug metabolic monitoring, specialised surgical
pathology and IT services.
Note: Deals filed within last 120 days
Source: Dealogic as of 3/28/08, Deal Value ≥ $20M
13
Exchange Comparison
Investor and Exchange Stages
Maturity
PE
Expansion
Growth
VC
Initial Sales
R&D
Exchange/
Concept
Venture
Private
AIM
TSX
NASDAQ
Capital
Equity
Candidates
Candidates
Candidates
Note: Qualitative graph
Investor Type
15
IPO Exchange Comparison
Source: Thomson Financial, IVC-Online and Exchange websites
(1) Performance based on 60 days post-IPO
16
2007 Initial Public Offerings
Source: Thomson Financial and IVC-Online
17
Israeli Listings on Various Exchanges
Source: Thomson Financial
18
Israeli Listings on Nasdaq
Source: Thomson Financial
19
US Listing Advantages
 Liquidity
 Research Coverage
 Technology and Healthcare Orientation
 Shares as Acquisition Currency
 Valuation
 Israeli Companies Acceptance
 Consideration point: Regulatory Enviroment
20
US IPO Opportunity
IPO Issues for Consideration
 Selection of underwriters
 Structure of IPO
 Corporate governance
 Professional services
 Timing
 Costs
22
US IPO Timeline
 A US IPO Process Typically Takes 12 – 14 Weeks amendments
23
Introduction to Oppenheimer
Oppenheimer Investment Bank
Oppenheimer Wealth Management
>
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Investment bank focused on Mid and
Small cap companies
Leading underwriter of Mid and Small
cap equity transactions with global
distribution
Leading financial advisor dedicated to
providing best-in-class advice and
M&A services globally
Proven equity, convert and high yield
sales and trading
Leading provider of corporate and
executive services
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The Leading Israeli Investment Bank
40 years of operation in Israel
Most active underwriter of U.S.
-listed
Israeli companies
>
Broad institutional distribution
network throughout Europe
>
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Offices in China and Hong Kong
Leading underwriter of U.S.
-listed
IPOs for Chinese companies
>
>
7th largest independent U.S.
investment bank based on # of
registered brokers
Robust retail distribution network with
~1,300 financial advisors servicing high
net worth individuals
Manages ~$62 billion in Client Assets
Oppenheimer Asset Management
>
>
Provides traditional asset management
services and alternative investment
strategies
~$17 billion in Assets under
Management
24
Strong Commitment to Israel
 Over 65 financings since 1997 for $6.7 billion in gross proceeds
 Over 10 M&A advisory assignments for $3.6 billion
Selected Transaction:
25
Thank You!
[email protected]
Office: +972 3 5262627