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Israeli tech firms storm markets, with record number of IPOs in June

According to IVC, $4.55 billion was raised in June via 18 traditional IPOs and SPAC deals, mainly in US and Israel

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

SentinelOne holds its initial public offering of shares on The New York Stock Exchange, June 30, 2021 (NYSE)
SentinelOne holds its initial public offering of shares on The New York Stock Exchange, June 30, 2021 (NYSE)

Israeli high-tech companies held a record number of initial public share offerings in June, with 18 such deals, via both traditional IPOs and mergers with special purpose acquisition companies, mainly on exchanges in the US and Israel.

The total amount of money raised in the public markets offerings in June was $4.55 billion, according to IVC Research Center, which tracks Israel’s high-tech industry.

There were four share offerings on the US markets in a single week, the data shows.

On Wednesday, Sentinel Labs raised $1.23 billion on the New York Stock Exchange, at a valuation of $9 billion.  IronSource raised $850 million at a valuation of $11.1 billion, after a merger with Thoma Bravo Advantage, a publicly traded special purpose acquisition company; shares of Payoneer Global also started trading on the Nasdaq, after the company raised $750 million at a valuation of $3.3 billion via a SPAC merger with FTAC Olympus Acquisition Corp.; and content recommendation firm Taboola’s shares hit the Nasdaq, raising $260 million at a valuation of some $2.6 billion, also in a SPAC merger with ION Acquisition Corp. 1, IVC data showed.

On June 10, Monday.com started trading on the Nasdaq after it raised $573 million at a valuation of $6.8 billion on the Nasdaq, IVC data showed.  On June 16, WalkMe raised $287 million on the Nasdaq.

“The extraordinary number of companies entering the US public markets in June through IPOs and mergers with SPACs has had two principal drivers: one financial and one economic,” said Alec Ellison, the US chairman of VC fund OurCrowd and a former chairman of technology investment banking at Jeffries LLC. “Financial markets are flush with cash from the Federal Reserve’s continued easy money policies. In addition, the application of digital technology across all economic sectors has accelerated the growth of the many companies enabling this digital transformation. Public markets have a voracious appetite for such companies.”

Also in June, companies that raised shares on the Tel Aviv Stock Exchange include Idommo, which raised $23 million; PulseNmore, with $42.3 million; and Aura Air, with $11 million, the IVC data showed.

According to IVC, five new unicorns, private companies at a valuation of over $1 billion, were formed in the month of June: Hailo, Transmit Security, JoyTunes, Claroty and Bringg.

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