Faber will raise 700 m in Equity – Global IPO

After doubling its value sevenfold in the past year,

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The Israeli goes out to raise capital: the company will raise $ 700 million in an IPO led by JPMorgan. The issue price is expected to close later in the day, and according to the outline for JP Morgan and the other underwriters, there will be a one-day option to purchase an additional 15% of the volume of shares to be issued. Faber shares are traded on NASDAQ at a price of $ 280, which reflects a value of $ 10 billion for the company. Faber, by the way, is not the only Israeli to go public after hitting forecasts, as is the 3D printing company.

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To raise $ 200 million.

And back to Faber, the company developed a trading arena for freelancers from various fields, and against the background of the move to work from home, as well as layoffs of employees who found themselves looking for an alternative income on a freelance basis, the company’s business flourished during the Corona period. Thus, in the capital market, sentiment towards it was also very positive, which led to the momentum being exploited by it already in May with an equity issue of $ 120 million at a price of $ 60 per share, and later with the issuance of Coco bonds (convertible bonds) in October and $ 460 million zero.

The upcoming raising will be against the backdrop of strong forecasts provided by Faber: Expect 87-90% growth in the quarter to $ 63-65 million in revenue (still negative adjusted EBITDA of $ 3-4 million) and 46-50% annual growth in revenue in the range of 277-284 Million, with adjusted EBITDA of $ 16-21 million.

The forecast was given by the company with the publication of good reports for it for the fourth quarter of 2020 and for the entire year: revenue for the quarter amounted to $ 55.9 million, 89% higher than the corresponding quarter and higher than analysts’ forecasts for revenue of $ 54.1 million for the quarter. Earnings for the quarter were $ 4.8 million, or $ 0.13 per share ($ 0.12 fully diluted), compared to $ 2.7 million for the same quarter ($ 0.08 per share), and similar to analysts’ average earnings forecasts of $ 0.12 per share.

For the full year, revenue increased 77% to $ 189.5 million, beating analysts’ forecasts for revenue of $ 187.7 million. Non-GAAP earnings for the period totaled $ 10.4 million, which is $ 0.32 per share (0.29 fully diluted), compared to a loss of $ 16.8 million ($ 0.58 per share) in 2019, which is similar to analysts’ earnings forecast. $ 0.3 per share.

Faber was founded by Micha Kaufman and Shai Weininger and was issued in 2019 at a value of $ 650 million after the money, after raising about $ 110 million. Faber’s trading arena is active in 160 countries with services such as graphic design, digital marketing, programming , Video editing and animation, music production, accounting, etc. Faber’s economic model is based on a commission that the company takes from each transaction between a client and a freelancer who provides the service.