Israel Equity Review & Outlook for Q4 2021: Record-setting 2021 Continues for Israel Equities
By Steven Braid, Data and Marketing Analyst
If the first half of 2021 for Israel’s global capital market were to be referred to as a “hit party” — characterized by a parade of record-setting IPOs, SPAC mergers, and relatively-high valuation numbers — then the third quarter could be aptly referred to as the “after-party”, as the action slightly slowed down, but the fun still continued.
32 Israeli companies went public in Q3 2021 to the tune of more than $17 billion in total IPO valuations — a combination of traditional IPO’s and SPAC merger completions — across all exchanges. In total, during the first nine months of 2021, 107 Israeli companies have now gone public with a total valuation between them of more than $84 billion. Of these 107 companies, 23 IPO’d in markets outside of Israel and 84 went public on the TASE, which comes on the heels of a 2020 which saw just 27 IPOs on the TASE for the full year. This IPO revolution has been spearheaded by the technology sector. After another 17 IPOs in Q3, high-tech has now contributed to 65 of the 107 new Israeli companies in 2021.
Aside from the continuation of new IPOs, Israeli equities experienced a dip to start the second half of 2022. Israel equities, as defined by the BlueStar Israel Global Index (ticker: BLS), dropped 0.58% in Q3 2021, underperforming developed international equities by 0.23%, as measured by MSCI EAFE. Israeli technology stocks, as defined by the BlueStar Israel Global Technology Index (ticker: BGTH), fell 5.44% in Q3 2021, trailing the Dow Jones US Tech and S&P Global Tech indexes by 7.57% and 6.21%, respectively. The long-list of recent IPOs from Israeli companies could add some new growth stories to BGTH in the next index rebalance.
BlueStar Israel Global Index and BlueStar Israel Global Technology Index
Source: MV Index Solutions. All values are rebased to 100. Data as of 30 September 2021.
Steven Braid is a Data and Marketing Analyst at MV Index Solutions. He is responsible for supporting the data, marketing, research, and product services. Prior to working for MVIS, Steven worked as an equity research analyst for Dane Capital Management, a special situations hedge fund, where he focused on SPACs and other forms of special situation transactions. Prior to his time in Finance, he worked as a professional journalist, publishing for the New York Times, USA Today, and other national periodicals. Steven has a M.S. in Data Analytics & Applied Research from the Baruch College Zicklin School of Business, and a BA in International Political Economy from the University of Michigan.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.