preface

4.2.3. Principal Listing Criteria
BDO Israel
DOING BUSINESS IN ISRAEL
As a rule, compliance with certain criteria is a condition for listing
shares on the Tel Aviv Stock Exchange.
Regarding an IPO, the following table summarizes the principal
financial criteria required (US$ 1 = NIS 3.549):
Criteria
Period of activity in the field defined
in the articles of incorporation that
has complete financial reports.
Stockholders' equity before
registration (US$ million)
Stockholders' equity after
registration (US$ million)
Added value in the 12 months
preceding registration.
A B
12
Months
12
Months
Alternative
C
("Large
Company")
R & D
Company
(*)
- -
0.56 0.56 - -
7.04 9.86 - 2.25
1.13 - - -
Public equity (US$ million) 5.64 8.45 22.54 -
Value of the public's share of stocks
issued (US$ million)
5.64 5.64 22.54 4.51
Market Capitalization (US$ million) - - 56.35 -
(*) The following terms have to be complied with:
The company invested at least NIS 3M ≈ US$ 845,000 in the last three years in
R&D activities from other sources, including investments from the Chief
Scientist.
The investment was approved as an R&D investment.
(i) Investment in R&D can be invested by a subsidiary or subsidiaries of the
company requesting to be traded, subject to several conditions.
(ii) The company (requesting to register on the trade market) will either
pursue its R&D activities or continue manufacturing and marketing the
outcome of its previous R&D.
(**) Added value is defined as:
Income before tax XX
Salaries and related expenses +XX
Depreciation +XX
Finance expenses +XX
XX
43