Canada’s leading equity markets have expanded into Israel in a bid to attract Israeli companies and strengthen relationships with the country’s business community.
The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) announced on Monday that they are currently exploring opportunities in Israel as part of the international growth strategy of both exchanges. As part of the decision, the TMX Group Limited, which owns and operates the exchanges, has appointed an executive specifically dedicated to Israel operations, Israeli hi-tech industry veteran Yossi Boker.
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“Our mandate is to raise the profile of our premier markets around the world,” said Nick Thadaney, president and CEO of Global Equity Capital Markets at TMX. “Boker’s vast experience and expertise in the Israeli market will enable us to more effectively promote the advantages of TSX and TSXV’s unique capital formation ecosystem and to potential clients and to better support Israeli companies listing on our exchanges.”
Prior to the official expansion of TSX and TSXV, there were six Israeli companies listed on the exchanges, with a market capitalization of approximately $3 billion, according to the TMX Group.
These companies include Adira Energy Ltd.; Eco (Atlantic) Oil & Gas Ltd.; Siyata Mobile Inc.; Vaxil Bio Ltd.
on TSXV; Baylin Technologies Inc. on TSX; along with Gazit-Globe Ltd.
The exchanges promote specific benefits to Israeli companies that consider listing on them, including access to North American investors in a securities framework that is able to support companies at all stages of growth, a statement from TMX said.
In addition, the statement added, companies could use the Canada-US multi-jurisdictional disclosure system to speed access to US listings at an appropriate stage, as well as take advantage of a competitive landscape of investment banks.
While TSX had traditionally been focused on natural resources – which were the center of the old Canadian economy – the exchange has in recent decades grown increasingly interested in technology, Boker told The Jerusalem Post on Sunday.
“The need or the desire to develop more of this segment brought the TSX to realize that Israel is actually the Start-up Nation,” said Boker, who will serve as head of business development in Israel.
As such, the exchange redirected its attention to Israel, Silicon Valley, China and a few other key places, with a goal of “attracting innovative companies to list on the TSX,” Boker said.
Another reason he cited for TSX’s entry into Israel was the opportunity to fill a gap, as the country lacks sufficient listing solutions for small-cap and mid-cap companies – those with small or mid-level market capitalization.
While large-cap Israeli companies can list on NASDAQ, those valued at less than $500 million have fewer places to turn, according to Boker.
TSX itself caters to companies with valuations of more than $100m., but the venture exchange TSXV is looking to attract those valued at between $10m. and $100m., he said.
When companies listed on TSXV grow and reach new milestones, they have the opportunity to then advance to TSX, he added. Out of today’s 1,400 companies listed on TSX, about 630 of the firms were graduates from the venture exchange, Boker said.