Shufersal will raise NIS 700 million – the capital market

After the positive reports for the fourth quarter of 2020 and the entire year the supermarket chain

Shufersal
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Announces that it is examining the possibility of an issue of up to NIS 700 million. The report on the possible recruitment resulted in a fall of 4% from the peak it climbed with the publication of the reports. Since then the stock has recovered however it is still a daily drop of 0.6% as of the time of writing these lines.

Shufersal will offer some of the shares to foreign institutional entities, with City Bank leading the raising. The food retailer is today publishing a presentation to investors in English, following another presentation in a language that was published last January. Shufersal estimates that after the next recruitment, they will not perform another one in the next six months.

The company also announced that it would distribute a dividend in the total amount of NIS 140 million, and in an investor conversation it was stated that Shufersal does not see a contradiction between the raising and the distribution of the dividend. According to CEO Itzik Aberhahn, part of the proceeds from the raising will be used to reduce the gross debt.

In reports it published, the company reported good results for the fourth quarter of 2020 and for the entire year: in the quarter amounted to NIS 3.9 billion – growth of 15.9% over the corresponding quarter – and net profit of NIS 120 million – 2.6% higher than in the period 117 million The equivalent last year. The annual profit amounted to NIS 387 million in 2020 and revenues of NIS 15 billion, an increase of 14% and 44%, respectively compared to 2019.

Shufersal is among the food retailers that have benefited from the corona crisis, with the stock jumping 30% in the last 12 months. In the past year and against the background of the crisis, Shufersal’s online activity has expanded, with 2020 sales of the Internet accounting for about 20% of the company’s total sales volume. Aberhahn also said in the investors’ conversation that Shufersal will expand the profitability of online operations, and that the next two collection centers that will open will be in Netanya and Modi’in, and those that will open later will be located in the Gush Dan envelope.