Israeli Finance Minister Avraham
Shochat finally signed the long awaited dual-listing regulation.
This move permits Israeli companies traded in the U.S. to list on the
Tel Aviv Stock Exchange without requiring additional filings. The
Finance Minister said that the dual listing would encourage the
Israeli stock exchange to compete internationally as well as allowing
Israeli capital markets to integrate in the globalization of capital
markets throughout the world. More than 100 companies now traded in
the U.S. are believed to be candidates for dual listings. Not
counting the 17 companies that are already dual listed, the combined
market value of the companies trading in the U.S. is close to $50b.
The regulation requires that the companies be listed on a U.S. market
for a minimum of one year. Those companies that have not been listed
abroad for a year can register on the TASE if their market
capitalization is greater than $350m. Companies that are already
traded both in the US and Israel will no longer be obligated to file
separately in Israel and the U.S. Dual listing will allow Israeli
companies to offer stock options to employees. Others who are
expected to benefit from the dual listing include Israeli and
European investors, who will enjoy lower transaction costs and
similar trading hours.