Internet Zahav Prepares to Go Public on Wall Street
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Internet Zahav, one of the two largest Israeli Internet providers, intends to go public next month on the American stock exchange. To ramp up to its IPO, its executives are now promoting the ISP in a road show throughout the US.
In addition the company has published its first prospectus, in which it was stated that they have 125 thousand subscribers.
Internet Zahav expects to raise at least 50 million dollars in exchange for 25 percent of its stock, setting the company value at US$200 million.
Analyst Tzvika Elberger says that established Israeli providers are planning ahead, especially since the competition in this area is getting tougher and other companies have begun to offer special deals. These deals include free surfing from companies like Barak, which is a partnership between Sprint, Deutsche Telecom and France Telecom, Israeli TV cable company MATAV, and Israeli investment company Clalcom.
Elberger estimates that most of the service providers, including the most established and the most successful, will eventually lose their relative advantage following the market entrance of cable companies and subsequently rival infrastructure providers.