Diplomat successfully completed a multiple initial public offering (IPO), and in the coming days the company’s shares will begin trading on the Tel Aviv Stock Exchange. As part of the issue, which was made in a non-uniform offer, the company raised NIS 300 million for about 20% of its shares. High demand in the amount of NIS 1.2 billion – four times the amount the company sought to raise. The offering was made at a value of about NIS 1.5 billion (after the money) and included a long list of leading institutional entities in the Israeli capital market. It intends to distribute a dividend of NIS 100 million to all its shareholders after the issue.
The offering was led by the underwriting company Orion, and alongside it a consortium of underwriters that included the underwriting companies of Lider, Barak Capital and Epsilon. The law firm of M. Firon & Co. accompanied the offering.
Diplomat is a global, long-standing and leading company in the field of sales and distribution of over 100 international and local mass consumer brands (FMCG – Fast Moving Consumer Goods), both in the fields of food, personal care, home cleaning and hygiene. Diplomat, established in 1963, currently operates in 5 countries: Israel, South Africa, Georgia, New Zealand and Cyprus. The company sells its products, among others, to retail chains in the fields of food, drugstore chains, pharmacies, containers, the institutional market and to wholesalers. As part of the prospectus, the company stated that its overarching goal is to be a leading player in the global FMCG industry, in all areas of its operations.
Noam Weiman, CEO of the group: “We are pleased to join the Tel Aviv Stock Exchange and thank the investing public for expressing confidence in the company and for their participation in the offering. Our history, after about 50 years, attests to long-term construction and consistent productive growth. I feel we have the right foundation to expand, and the issuance of the company is another milestone in our development and establishing our status as a leading company in its field.
In the future, we will focus on our own brands, organic growth by expanding the range of existing suppliers ‘brands and leveraging suppliers’ ties to enter new countries, open advanced technological solutions in sales and logistics and select activities in new categories and channels characterized by rapid growth. Thanks to all this, we can gain appreciation and recognition, by our customers and business partners. ”
The company has a long-standing business partnership with the world’s leading international companies in the field of consumption, including Procter & Gamble (P&G), Mondelez (Mondelez) and Nestlé (Georgia). Diplomat distributes and markets leading brands such as: Gillette, Brown, Dorsal, Neutrilon, Lotus, Cluj, Oreo, Kikoman, Heinz, Blue-Band, Milka, Jacobs, Pringles, Ariel, Always, Tempax, Pampers And Beyond-Meat meat brands. In Israel, the company owns the leading tuna brand, Starkist. Recently, Diplomat acquired 50% of Meditrend, which imports and markets health products, dietary supplements and over-the-counter medications. In addition, the company acquired 50% of CDSL, in collaboration with Chemipal, which provides the logistics and management services of Marlog to the Super Pharm chain in Israel.
Diplomat, managed by Noam Weiman, currently employs about 2,500 people worldwide. The company ended the first nine months of 2020 with revenues of NIS 2 billion, with an operating profit of NIS 94.2 million, compared with NIS 85.6 million in the corresponding period in 2019, and a net profit of NIS 58.7 million. NIS, compared with NIS 44.6 million in the corresponding period in 2019. The company has adopted a dividend distribution policy of approximately 50% of net profit.