The board of directors of the Tel Aviv Stock Exchange has approved the launch of a new stock index in cooperation with the Ministry of Economy and Industry, which will include the industrial companies traded on the TASE and will be launched towards the end of April.
The new index, the TA-Industrial Index, includes more than 80 companies in a wide range of industrial sectors, with a total market value of more than NIS 250 billion from a variety of industrial sectors: pharmaceuticals, electronics and optics, Fashion and clothing In order to give expression to small and medium size manufacturing companies and to achieve wide dispersion, a maximum weight limit of 3% was set for a single share.
The Ministry of Economics and Industry and the Tel Aviv Stock Exchange expect the index to provide an additional incentive for private industrial companies to examine non-bank and non-governmental financing channels and to raise investors through an IPO on the Israeli stock exchange.
The new index is characterized by the dominance of high-tech, technology and biomed companies. 82% technology companies and 20% biomed companies. The effective date for determining the composition of the index will be the end of trade, on April 12, 2018.
The TA-Industrial Index will be launched at a joint conference of the Ministry of Economy and Industry and the Tel Aviv Stock Exchange on April 25, in which additional tools will be presented to promote Israeli industry and leveraging investment opportunities in the stock market.
The public is part of the success
"The launch of the new index will serve as an investment channel for local and international companies interested in exposure to Israeli industry," said Eli Cohen, Minister of Economy and Industry.
"We are proud to launch the new index that reflects the strength of the blue and white industry and will enable the investing public to be part of the success of the Israeli economy. We hope that the launch of the new index will encourage Israeli companies, both from the traditional and hi-tech industries, and Biomed to issue on the Tel Aviv Stock Exchange. "
Over the course of the year, the TASE plans to launch additional indices.