Israeli telecom equipment maker ECI considering London IPO
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Israeli telecom equipment maker ECI considering London IPO

Petah Tikva-based maker of communication networks is seeking to raise some $230 million in a bid to pay off debt and increase visibility, Reuters reports

Illustrative image of the London Stock Exchange (Manakin; iStock by Getty Images)
Illustrative image of the London Stock Exchange (Manakin; iStock by Getty Images)

The Israeli telecom equipment maker ECI Telecom said on Thursday it is considering an initial public offering of shares on the London Stock Exchange.

The firm is seeking to raise some $230 million in a bid to pay off debt and increase visibility, Reuters reported.

“The offer would be comprised of new shares to be issued by the company, to raise gross proceeds of approximately $230 million, and a potential offer of existing shares to be sold by the selling shareholder,” ECI’s registration document said, according to Reuters.

The company, operating since 1961, is a provider of products and solutions for communications and data transmission networks for service providers, infrastructure and government entities, as well as defense and security customers. ECI is headquartered in Petah Tikva and had over 250 customers and operations in more than 70 countries worldwide as of the end of 2017, the company said in the document and in a statement in Hebrew.

The company changed its strategy a few years ago to focus solely on optical solutions and data transfer solutions, and since then has released a new set of solutions and products, which now constitute the majority of its sales. Some 87% of the company’s R&D personnel are software engineers, the Hebrew statement said.

Since 2007, the company has invested more than $1 billion in research and development to develop new networking products and software solutions for communication, the statement said.

Already once a publicly traded firm, ECI was acquired for some $1.2 billion in 2007 by the Swarth Group and other investors ,who delisted the shares from Nasdaq.

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