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					Going Public Abroad –
Key Considerations



Amir Aviv
Managing Director, International Corporate Finance
Poalim Capital Markets                                                 November 8, 2006

                                                                                                1
  1                            Strategic Alliance With:   Strategic Alliance in the U.K.With:
Table of Content


 A.   Introduction to Poalim Capital Markets (PCM)

 B.   Where to List?

 C.   Listing Profiles and Shareholders Liquidity

 D.   Relative Valuations Across Markets

 E.   Liquidity - Nasdaq Vs. AIM

 F.   Market Efficiency – Case Studies

 G.   Comparative Costs




                                                                                           2
  2                      Strategic Alliance With:    Strategic Alliance in the U.K.With:
Introduction to Poalim Capital Markets




                                                                                 3
 3              Strategic Alliance With:   Strategic Alliance in the U.K.With:
Poalim Capital Markets - Overview


              Strategic Alliance (UK)                                                                        Strategic Alliance




    B R         D G E W E L L




          Bank
                                                                                                     International
        Hapoalim                           Local
                                                                             Private Equity           Corporate                           Research
       Holdings and                     Underwriting
                                                                                                       Finance
       Investments




                            Poalim            Poalim                       Poalim          Poalim      Poalim             Poalim Real
                            THTF *           Mezzanine*                     Abus          Ventures     Medica                Estate




 * Funds in formation

                                                                                                                                                     4
   4                                            Strategic Alliance With:                                       Strategic Alliance in the U.K.With:
Poalim Capital Markets Public Offerings 2005-2006 YTD
                                                       $290,000000                                $90,000,000                           $191,000,000




                                                  Initial Public Offering                  Initial Public Offering                  Initial Public Offering


  (U.K.)                                               October 2006                                May 2006                            February 2006




                                     $47,500000                             $160,000,000                             $132,000,000                              $201,100,000




                            Initial Public Offering                    Initial Public Offering                    Follow- On Offering                    Follow-On Offering
  (USA)
                               November 2006                                 May 2006                                 March 2006                              December 2005



               $118,000,000                            $62,400,000                            $64,400,000                            $401,280,000                             $133,831,000




           Initial Public Offering                Initial Public Offering               Initial Public Offering                Follow-On Offering                       Follow-On Offering


             November 2005                            September 2005                             March 2005                          March 2005                           September 2004



                                                                                                                                                                                             5
  5                                                       Strategic Alliance With:                                                                  Strategic Alliance in the U.K.With:
Poalim Capital Markets Advisory Services 2005-2006 YTD

                                   $159,000,000                        $7,000,000                  $2,300,000

                                                                                                    Inspair
                                                                         Invested
                                                                            in                     Invested
                               Has been acquired by                                                   in




                                     July 2006                          July 2006                  May 2006


            $7,000,000              $7,000,000                         $90,000,000                $57,000,000                       $54,000,000

                                                                                                                                   Sold 13% of
                                     Invested
             Invested                   in                     Has sold a majority interest
                in                                                         to                  Issued 11% of its
                                                                                                shares capital to
                                                                                                                                          to


             April 2006             March 2006                         March 2006                January 2005                      January 2005


           $12,000,000             $230,000,000                       $67,851,000                 $60,500,000                      $50,500,000


                                                                Selling of shares & debt                                               OREX
                                                                                                                                      Distributed Computed Radiography

                                                                            in
         Has acquired by     Has agreed to be acquired                                        Has been acquired by             Has been acquired by
                                        by
        Fortissimo Capital
                and                                                       to
                                                               York Capital Management
        Kanir Investments                                               and to
                                                                    Mivtach Shamir
         November 2005           November 2005                          July 2005                 April 2005                       March 2005




                                                                                                                                                                         6
  6                                 Strategic Alliance With:                                                         Strategic Alliance in the U.K.With:
Where to List?




                                                                                  7
 7               Strategic Alliance With:   Strategic Alliance in the U.K.With:
Key Considerations – Company Specific Approach

   Valuation
       Metric used – Profit, Revenue, EBITDA, DCF, Revenue Multiples
       Forward Looking vs. Current Results
       Current Market Sentiment

   Sector Specific Sentiment
       Sector Performance
       Flavor of the Month
       Flow of Capital into Relevant Funds
       Research Following

   Location of revenues- Product Market
       Local
       Europe
       US

   Competitive Landscape- Listing Location



                                                                                                              8
 8                             Strategic Alliance With:                 Strategic Alliance in the U.K.With:
Key Considerations – Company Specific Approach (cont’d)
    Size and Critical Mass
    Liquidity
        Percentage Float
        Sector Specific
        Form of Liquidity – open market, block sales
    Costs
        Capital at Risk
        Success Costs
        Maintenance Costs
    Regulation and Reporting Requirements
        Quarterly (Nasdaq, TASE) vs. Semi Annually (London)
        Dual-Listing Arrangements
    Profile as a Public Company
        Target Product Markets –Branding and Positioning
        Disclosure Requirements (Transparency)
    Location of Management and Operations

                                                                                                     9
  9                             Strategic Alliance With:       Strategic Alliance in the U.K.With:
Listing Profiles and Shareholders Liquidity




                                                                                 10
10              Strategic Alliance With:   Strategic Alliance in the U.K.With:
NASADQ IPOs Priced 2006 YTD                                                     ($ in millions)
               Total        Market                                 Secondary          LTM                            LTM                   At Pricing
                                          Ownership                                             LTM
Percentile    Offering       Value                                Shares as a %     Revenue                          EBIT                 P/E on Next
                                           Dilution                                             EBIT
                Size       at pricing                              of Offering                                      Margin              Year’s Earnings

              2,579.3
 100%                       6,016.1        114.3%                      100.0%       7,792.0    497.0              146.2%                      79.6x

  90%          481.6        1,705.6         42.8%                      47.3%        942.3       67.6                27.1%                     25.9x

  80%          264.6         994.5          35.3%                      26.0%        385.7       39.6                14.2%                     18.9x

  70%          184.9         536.8          30.2%                      16.2%        285.2       23.0                10.2%                     16.0x

  60%          140.7         383.8          27.4%                      0.0%         176.2       12.0                 7.0%                     14.0x
  50%          105.6         306.4          23.8%                      0.0%          85.5         4.8                6.2%                     12.5x

  40%           87.0         269.9          20.3%                      0.0%          43.3         1.1                4.2%                     10.8x

  30%           61.1         218.1          18.3%                      0.0%          30.9       (0.7)                1.3%                     8.8x

  20%           38.5         140.0          14.4%                      0.0%          14.9      (10.7)              (1.7%)                     -4.0x

  10%           25.4          84.5          0.0%                       0.0%           3.5      (17.7)             (47.5%)                     -13.5x

* Columns represent stand-alone threshold data and are not interdependent
Source: Equidesk as of November 1, 2006; includes SEC registered IPOs; excludes REITs and closed-end funds.

                                                                                                                                                       11
    11                                      Strategic Alliance With:                                    Strategic Alliance in the U.K.With:
NASADQ - YTD Over 40% of IPO’s had a Secondary Share Component




Source: Equidesk as of August 1, 2006; includes SEC registered IPOs; excludes REITs and closed-end funds.
                                                                                                                                            12
   12                                       Strategic Alliance With:                                  Strategic Alliance in the U.K.With:
NASADQ - On Average < 30% of Shares Sold are Secondary Shares




                                                           38.1%                38.1%

                                                                                            33.6%
                                                                                                       32.2%
                                                                                                                            29.2%
                                                                       26.6%

                             23.0%       23.2%
                 21.0%




Source: Equidesk as of November 1, 2006; includes SEC registered IPOs; excludes REITs and closed-end funds.

                                                                                                                                            13
   13                                       Strategic Alliance With:                                  Strategic Alliance in the U.K.With:
AIM - Distribution of companies by equity market value



                        400
                                                          370

                        350

                        300
  Number of companies




                                          229                            242
                        250
                                                                                 197
                        200         183

                                                                                           145
                        150
                              114

                        100

                         50                                                                          23
                                                                                                                    11                  5
                          0
                              0-2   2-5   5-10/         10-25/          25-50   50-100   100-250   250-500 500-1,000               Over
                                                                                                                                   1,000
Source: LSE, as of November 2006                             Market value range £m

                                                                                                                                              14
          14                                 Strategic Alliance With:                                   Strategic Alliance in the U.K.With:
Relative Valuations Across Markets




                                                                                 15
 15             Strategic Alliance With:   Strategic Alliance in the U.K.With:
Valuation Methodology

                           Method                                   Comment                       Relevance


                                                            Preferred benchmark for IPOs
                        Forward P/E                      reflecting investors’ preference for        
                                                                      profitability
        Multiples



                                                      Not distorted by differences in capital
                                                                     structure
                    Forward EV / EBITDA                                                                 
                                                      Many technology companies still pre
                                                                  operating profit


                                                         Historically the standard valuation
                                                              tool where lack of profits
                     Forward EV / sales                                                                  
                                                          Used to review valuation levels
                                                                   across the cycle


                                                       Significant sensitivity to a number of
        DCF




                                                                    assumptions
                       DCF analysis                                                                       
                                                       Overly dependent on terminal value
                                                          Often used as a “sanity check”



                                Key driver will be forward P/E

                                                                                                                                      16
 16                                 Strategic Alliance With:                                    Strategic Alliance in the U.K.With:
  Industry Benchmarking – Where are Your Competitors Trading?

  gross margin and growth rate
                                                                        Long Term
  support high value?                                                   Growth Rate

                                      Long-              3 Year         25%
                                       Term               Gross
              Primary   Market Cap    Growth             Margin
Name         Exchange   ($ million)    Rate              Growth
                                                                        20%
Comps

                          $371.4       13.5                1.2%
                                                                        15%
                          1378.5       22.8                  3.6
                          1502.8        15                    -3
                                                                        10%
                          325.7        18.5                  5.7
                          4007.1       16.3                  2.7
                                                                         5%



                                                                         0%
                                                                           20% 25% 30% 35% 40% 45% 50% 55%
                                                                                      LTM Gross Margin


                                                                                                                                 17
        17                                   Strategic Alliance With:                      Strategic Alliance in the U.K.With:
LSE vs. NASDAQ

                                                                               20.0x
 20
                                                                                                 17.7x

                                                                   14.8x   14.5x       14.5x
 15

                                       10.5x                10.9x
                                                                                                                             London
                                9.2x
 10                                                                                                                          Nasdaq



   5
            1.9x 1.5x


   0
        TEV/Revenues          TEV/EBITDA                      TEV/EBIT      LTM P/E     NTM P/E

       Nasdaq Valuations are 20% Higher than AIM Across the Board
*Sources – NASDAQ , LSE, CapitalIQ
*Companies with market cap <1Bn USD as of September 2006
                                                                                                                                      18
  18                                    Strategic Alliance With:                       Strategic Alliance in the U.K.With:
LSE vs. NASDAQ - Healthcare
  30
                                                                                           27.9x


  25                                                                                                                   23.4x
                                                                                   21.0x
  20
                                                                           17.3x
                                                                                                             16.2x
                                                                   15.0x                                                                 London
  15
                                        12.8x                                                                                            Nasdaq
                                10.0x
  10


    5              3.4x
            2.3x

    0
            TEV/REV            TEV/EBITDA                          TEV/EBIT         LTM P/E                    NTM P/E
        Healthcare Companies Valuations on Nasdaq are 24% Higher than on AIM
*Sources – NASDAQ , LSE, CapitalIQ
*Companies with market cap <1Bn USD as of September 2006

                                                                                                                                            19
  19                                    Strategic Alliance With:                                   Strategic Alliance in the U.K.With:
LSE vs. NASDAQ - IT
30
                                                                                   27.8x


25

                                                                                                        20.9x
20                                                                         18.8x
                                                                   17.5x

                                                            13.6x                            14.4x                               London
15
                                      12.3x                                                                                      Nasdaq

10                             9.3x



  5
          1.3x 1.6x
  0
          TEV/REV            TEV/EBITDA                       TEV/EBIT      LTM P/E            NTM P/E

         IT Companies Valuations on Nasdaq are 28% Higher than on AIM
*Sources – NASDAQ , LSE, CapitalIQ
*Companies with market cap <1Bn USD as of September 2006

                                                                                                                                          20
  20                                    Strategic Alliance With:                           Strategic Alliance in the U.K.With:
LSE vs. NASDAQ – Industrial (%)
 25


                                                                             19.8x
 20
                                                                                            17.1x
                                                                                 15.6x           15.4x
 15
                                                             12.9x
                                                                     12.2x                                                     London
                                                                                                                               Nasdaq
 10                             9.5x
                                       8.7x


  5

           1.2x 1.2x

  0
           TEV/REV           TEV/EBITDA                       TEV/EBIT          P/E      Forward P/E
    Industrial Companies Valuations on Aim are 9% Higher than on Nasdaq
*Sources – NASDAQ , LSE, CapitalIQ
*Companies with market cap <1Bn USD as of September 2006

                                                                                                                                        21
  21                                   Strategic Alliance With:                          Strategic Alliance in the U.K.With:
Liquidity - NASDAQ Vs. AIM




                                                                                22
 22            Strategic Alliance With:   Strategic Alliance in the U.K.With:
Liquidity - NASDAQ vs. AIM

     Liquidity on Nasdaq is better than on AIM across the board, however...


                                                      Number of
                      Number of                                       AIM Avg.              Nasdaq Avg.
        Market Cap                                   Companies in
                     Companies in                                   Daily Volume            Daily Volume
        (mn USD)                                       Group -
                      Group - AIM                                    (USD – mn)              (USD – mn)
                                                       Nasdaq

             0-50        702                              184          0.053                         0.216

           50-150        243                              560          0.300                         0.564

          150-300         96                              496          0.691                         1.850

          300-500         37                              433          1.140                         3.500

             500+         26                              945          7.620                        45.900

Source: CapitalIQ

                                                                                                                     23
   23                          Strategic Alliance With:                        Strategic Alliance in the U.K.With:
Liquidity - NASDAQ vs. AIM

                                  Liquidity on AIM is improving rapidly


                                300

                                250

 Average Daily                  200
  Volume £mn
                                150

                                100

                                 50

                                  0
                                      2002               2003    2004   2005   2006
                                                                               YTD


Source: London Stock Exchange

                                                                                                                      24
   24                                 Strategic Alliance With:                  Strategic Alliance in the U.K.With:
Market Efficiency – Case Studies




                                                                                 25
 25             Strategic Alliance With:   Strategic Alliance in the U.K.With:
Ituran
                                          Summary                                                                Premium Analysis
     NASDAQ IPO completion date: September 27th, 2005                                   3 months prior to IPO: 40.0%
                  Total funds raised at IPO and green-shoe: $71,760,000
                                                                                         6 months prior to IPO: 29.2%
                  At IPO: Net proceeds to selling shareholders: $11.7mn
                  Green-shoe: Net proceeds to selling shareholders: $1.8mn              9 months prior to IPO: 52.4%
                  Total funds to selling shareholders: $13.5mn                          12 months prior to IPO: 101.0%
                  5 foreign I-banks cover Ituran with research
                                                                                         3 months after the IPO to IPO price: 20.8%

                     Stock Price Performance on TASE                                                       Relative Price Appreciation
                   12 months before IPO to 3 months after                                             12 months prior to IPO to 3 months after
                  8000                                                                                160

                  7000                                                                                140
Price Per Share




                  6000                                                                                120
                                                                                                      100




                                                                                         Percentage
                  5000
                  4000                                                                                 80                       ITRN
                  3000                                                                                 60
                  2000                                                                                 40                                                     TA100
                  1000                                                                                 20                                        Nasdaq
                       0                                                                               0
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                                                                                                                                                                      26
                  26                                         Strategic Alliance With:                                   Strategic Alliance in the U.K.With:
Lipman
                                         Summary                                                               Premium Analysis
 NASDAQ IPO completion date: February 3rd, 2004                                        3 months prior to IPO: 24.0%
                 Total capital raised at IPO and green-shoe: $142,395,000
                                                                                        6 months prior to IPO: 51.1%
                 At IPO: Net proceeds to selling shareholders: $29.3mn
                 Green-shoe: Net proceeds to selling shareholders: $0mn                9 months prior to IPO: 73.6%
                 Total funds to selling shareholders: $29.3mn                          12 months prior to IPO: 123.2%
                 4 foreign I-banks cover Lipman with research
                                                                                        3 months after the IPO to IPO price: 11%

                     Stock Price Performance on TASE                                                     Relative Price Appreciation
                   12 months before IPO to 3 months after                                           12 months prior to IPO to 3 months after
                                                                                                    180
             12000                                                                                  160
             10000                                                                                  140
Price per share




                                                                                                    120
                                                                                                                                    LPMA


                                                                                       Percentage
                  8000
                                                                                                    100
                                                                                                                                                  TA100
                  6000                                                                              80
                                                                                                    60
                  4000
                                                                                                    40                                                Nasdaq
                  2000                                                                              20
                    0                                                                                0
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                                                                                             11
                                                                                                                                                               27
           27                                               Strategic Alliance With:                                  Strategic Alliance in the U.K.With:
Frutarom
                                          Summary                                                       Premium Analysis
        LSE IPO completion date: February 3rd, 2005                             3 months prior to IPO: 30.3%
        Total funds raised at IPO and green-shoe: $100,716,000
                                                                                 6 months prior to IPO: 31.3%
        At IPO: Net proceeds to selling shareholders: $15.3mn
                                                                                 9 months prior to IPO: 59.2%
        Green-shoe: Net proceeds to selling shareholders: $4.6mn
        Total funds to selling shareholders: $19.9mn                            12 months prior to IPO: 82.3%

        2 foreign I-banks provide Frutarom with research                        3 months after the IPO to IPO price: -3.4%

                      Stock Price Performance on TASE                                             Relative Price Appreciation
                    12 months before IPO to 3 months after                                   12 months prior to IPO to 3 months after
                  4000                                                                      120

                  3500
                                                                                            100
                                                                                                                                                       FRUT
Price Per Share




                  3000
                                                                                            80
                  2500
                           LPMA

                                                                               Percentage
                  2000            TA100                                                     60

                  1500                                                                      40
                  1000                                                                                                                               TA100
                                   Nasdaq                                                   20
                   500
                       0
                                                                                             0                                                       Nasdaq
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                                                                                                                                                              28
                  28                                Strategic Alliance With:                                   Strategic Alliance in the U.K.With:
Comparative Costs




                                                                               29
 29           Strategic Alliance With:   Strategic Alliance in the U.K.With:
Cost of Going Public

                  ($US)                                      Nasdaq              AIM
      Registration Fee                                       ~$5,500           ~$20,000
      Listing Fee                                           ~$100,000           ~$6,000
      Printing Expenses                                     ~$200,000          ~$60,000
      Legal Fees                                            ~$500,000         ~$400,000
      Accounting Fees                                       ~$500,000         ~$350,000
      Transfer Agent & Registrar                             ~$10,000          ~$15,000
      Fees
      Nomad/I-Bank Fee                                          N/A           ~$300,000
      Underwriting Discount*                           ~$3,500,000 (~7%)   ~$2,500,000 (~5%)
      Miscellaneous                                         ~$100,000          ~$70,000
      Total Approximate Cost                                ~$4,915,500      ~$3,721,000



      * Assumes a $50m dollar raise
      ** Capital at risk is approximately $400k, $220k on NASDAQ and AIM respectively


                                                                                                                     30
 30                              Strategic Alliance With:                      Strategic Alliance in the U.K.With:
Public Company Ongoing Costs

                      ($US)                                     Nasdaq                  AIM
        Directors & Officers                                   ~$200,000         ~$100,000
        Insurance
        Directors Fees & Expenses                              ~$150,000         ~$100,000
        Annual Audit Accounting                                ~$100,000          ~$80,000
        Fees
        404 Compliance*                                        ~$400,000            N/A
        Legal Fees                                             ~$150,000         ~$150,000
        SEC & Exchange Compliance                              ~$100,000            N/A

        Listing Fees                                           ~$25,000          ~$20,000
        Nomad Expenses                                            N/A            ~$90,000
        Other (Investor Relations,                             ~$100,000         ~$100,000
        Mailing, Printing, Trvl, etc.)

        Total Approximate Cost                                 $1,225,000         $640,000

* 404 not applicable to foreign issuers until 2007. Varies depending on company size.
** Nasdaq incremental cost for TASE listed companies approx. $400-$600k based on survey of dual listed companies


                                                                                                                        31
   31                               Strategic Alliance With:                      Strategic Alliance in the U.K.With:
     Thank You
     Contact Details:
     Amir Aviv
     Managing Director,
     International Corporate Finance
     Poalim Capital Markets
     Tel: (03) 567-5590
     aaviv@poalimcm.com




                                                                                               32
32                            Strategic Alliance With:   Strategic Alliance in the U.K.With:

				
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Description: Bank Hapoalim London document sample