The sharp falls in New York at the end of last week marked a symbolic low point for the Israeli tech companies that listed on Wall Street last year, either through an IPO or SPAC merger. Israeli ecommerce platform Global-e Online Ltd. (Nasdaq: GLBE) fell 3.81%, taking its market cap down to $ 3.893 billion, close to its valuation at its IPO last May. The share price is down a further 2% in premarket trading. Global-e has lost 69% of its value since its peak last year and is the last of the 22 Israeli tech companies that listed on Wall Street last year to tumble back to its IPO value or below.
Global-e has fared relatively well by returning to its IPO value. App monetization company ironSource (NYSE: IS), for example, held a SPAC merger in June at a company valuation of $ 11 billion. After falling 3.76% on Friday, the company has a market cap of just $ 4.174 billion, 67% below its peak value last year.
Most of the worst performing Israeli tech companies held SPAC mergers rather than IPOs, merging with a special purpose acquisition company which had raised money with the express purpose of merging with an existing tech company. For example, auto-tech company Innoviz (Nasdaq: INVZ) completed a SPAC merger in April 2021 at a company valuation of $ 1.4 billion. Today it has a market cap of just $ 395,000, 72% below its debut value and 76% below its peak value. The worst performing of all Israel’s tech companies that listed on Wall Street last year was by another auto-tech company Otonomo (Nasdaq: OTMO), which completed a SPAC merger in August at a company valuation of $ 1.26 billion. Otonomo today has a market cap of just $ 176,000, 86% below its debut valuation.
Other Israeli tech companies on Wall Street have performed more impressively but are still below their IPO value and far below their peak value last year. Cybersecurity company SentinelOne (NYSE: S) held its IPO in June at a company valuation of $ 9 billion. Today it has a market cap of $ 8.88 billion, just below its IPO value but 57% below its peak value last year. Work operating system company monday.com (NYSE: MNDY) held its IPO in June at a company valuation of $ 6.8 billion. Today monday.com has a market cap of $ 6.017 billion, 11% below its IPO value and 69% below its peak value last year.
There is in fact one Israeli company that held an IPO on Wall Street in 2021 and is currently showing positive returns, and it is not a tech company. Zim Integrated Shipping Services Ltd. (NYSE: ZIM). Since its IPO in January 2021, boosted by the huge demand and rising prices for shipping, Zim’s share price has risen 264% to give a market cap of $ 6.5 billion. Even so in March, Zim had a market cap of over $ 10 billion.
Published by Globes, Israel business news – en.globes.co.il – on April 25, 2022.
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