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Investing in Israeli companies via the London Stock Exchange

“Israeli Companies’ continued success is a model for the rest of the world.” – Forbes

This article following on from the Investing In Israel through the London Stock Exchange series. Part 1 Investing in Israel via the LSEG – & 7 Israeli Tech Companies and Part 2 Investing In Israel via the LSEG – Investment and Property Services Companies

Last year it was announced by Israel’s Ambassador to the UK, that bilateral trade between the UK and Israel rose by 25% in 2017 rose to a record £6.9 billion, a trend that analysts predict will continue.

Despite having only around 8 million residents and a land mass slightly larger than the size of Wales, the ‘scale-up nation’ has emerged as a desirable investment destination.

One consensus to the reason behind Israel’s success; a relentlessness dedication to bring fast-growing disruptive technology businesses beyond the boundaries of geography. Western nations trade relatively easily with their neighbors, whilst Israel does not yet have that privilege. With such political challenges with bordering nations, and a relatively small domestic market, Israel’s entrepreneurs are forced to think of commercial success at an international level.

On average the nation invests more than 5% of GDP back into Research & Development initiatives. Private venture capital spending in Israel is also on the top of the world’s list.

BEYOND BREXIT

Winston Churchill said “let our advanced worrying become advanced thinking and planning”

A UK government issued White Paper identified Israel as a trade priority for post-Brexit Britain because of the potential synergies between Israel’s high levels of innovation and British strengths in design, business growth and finance, as well as the UK’s own high-technology, scientific and institutional strengths.

There are now at least 337 Israeli tech companies operating in the UK. Figures from the British Embassy in Israel show a 33% growth in the value of their investments in the year following the UK’s EU membership referendum result. While the increase was only from £114m to £152m, the number of new investors has been sustained, and their investments climbed in value to £298m in the year to June 2018. This also resulted in a 12.8 per cent increase in jobs created in the UK.

“I would have preferred that there hadn’t been this complication called Brexit, but I’m sure we’ll overcome anything thrown at us,” Asher Bennett, Israeli Founder of Tevva Motors

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LISTED COMPANIES ON THE LSEG

In 2018 €8.4 billion in Israeli stocks was traded on London Stock Exchange

Market Capitalisation, values taken on the 9th of January 2019, and vary from day to day, so should be taken as approximates. Share trading available from Hargreaves Lansdown.

1 – PLAYTECH PLC | Gambling | Market Cap $b 1.6

2 – PLUS500 LTD | Investment Services | Market Cap $b 1.703

3 – 888 HOLDINGS PLC | Gambling | Market Cap $m 652

4 – PPHE HOTEL GROUP LD | Hotels | Market Cap $m 719.7

5 – SUMMIT GERMANY LIMITED | Real Estate Holdings | Market Cap $m 517

6 – SAFECHARGE INTERNATIONAL GROUP LTD | Financial Administration | Market Cap $m 414

7 – XLMEDIA PLC | Media Agency | Market Capital $m 164.6

8 – TAPTICA INTERNATIONAL LTD | Media Agency | Market Cap $m 130.

9 – TELIT COMMUNICATIONS PLC | Telecommunications Equipment | Market Cap $m 160

“Israeli companies have a total Combined Market Cap of  $17.9 billionJustine Zwerling – Head of Primary Markets Israel – LSEG

10- BCRE BRACK CAPITAL REAL EST INV NV | Real Estate Holding & Development | Market Cap $m 159

11 – KAPE TECHNOLOGIES (formerly Crossrider PLC) | Software | Market Cap $m 142

12 – BATM ADVANCED COMMUNICATIONS LD | Market Cap $m 191.7

13 – AFI DEVELOPMENT PLC | Telecommunications Equipment| Market Cap $m 199.5

14 – LIVERMORE INVESTMENTS GROUP LD | Specialists Finance | $m 71.68

15- MATOMY MEDIA GROUP LTD | Media Agencies | Market Cap $m 7.21.

16 – AMIAD WATER SYSTEMS LD | Industry Machinery | Market Cap $m 49.86

17 – B.S.D CROWN LTD | Internet | Market Cap $m 22.4

18 – ALBERT TECHNOLOGIES LTD | Software | Market Cap $m 19.9

Despite its small stature, the developed market is a tech and healthcare powerhouse. A powerhouse that is growing by leaps and bounds. For investors, Israel, the often ignored nation could be one of the brightest spots on the map. – Forbes

19 -TECHFINANCIALS INC | Software | Market Cap $m 4.24

20 – ETHERNITY NETWORKS LD | Telecomms Equipment | Market Cap $m 12

21 – SHEFA YAMIM (A.T.M.) LTD | Diamonds & Gemstones | Market Cap $m 8

22 – MTI WIRELESS EDGE | Telecomms Equipment | Market Cap $m 13.7

23 – SIMIGON LD MTI | Software | Market Cap $m 6.35

24- BAGIR GROUP LTD | Market Cap $m 4.7

25 – STARCOM PLC | Software | Market Cap $m 4.6

26 – PLAZA CENTERS N.V. | Real Estate Holding & Development | Market Cap $m 2

Special thank you to Justine Zwerling Head of Primary Markets and Christopher Loscher, Press Officer, London Stock Exchange.

This article originally appeared on Linkedin and is reposted with permission.

Jon Simmons

Jon is a digital project manager who consults for small start ups in London. Through Israelinvestment.org he stewards a small community of Christians in the UK who encourage each other to invest in ethical businesses in Israel.

https://kehilanews.allisrael.com/person/jonsimmons/

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