Dual Listing - A Win-Win Strategy

September, 2015

The Tel-Aviv Stock Exchange – Since 1935

One Stop

Shop

Fully-

automated

Ownership

Regulation

Central order book trading system

26 TASE members

Israel Securities Authority

• Trading in shares, bonds, treasury bills, index products,

derivatives.

• Clearing, Settlement, Depository and Custody services.

• Calculating & publishing securities indexes.

TASE – Part of the global capital market7 foreign members:

Israel was upgraded from an

emerging to a developed market:

• by FTSE since May 2008

• by MSCI since May 2010

46 Companies cross-listed with

foreign exchanges

TASE is member of the US DTCC

( Depository Trust and Clearing

Company) - Facilitate the

settlement, transfer and payments

of dual-listed securities.

Designated offshore securities

market by the U.S. SEC.

No foreign currency restrictions

ETNs market in Israel

20.0 Billion $390 ETNs on Equity Indices

12.6 Billion $240 ETNs on Debt Indices

Major equity

indices

Assets Under

Management

TA-25 TA-75 TA-100

$2.6B $1.4B $4.2B

25 biggest shares75 next biggest

shares100 biggest shares

ETNs are obliged to track their underlying indexes (ETFs- best effort)

Hi-Tech Companies - August 2015

128 Companies 337

67

6

24

12

165

9

20

10

13

128Companies

(out of 465)

Defense

Communication

Equipment

Investments In

High-Tech

Biotechnology

Investment in Life

Science

Medical Devices

Semi – Conductors

Cleantech)

Internet & Software

IT Services

Electronics & Optics)

Dual Listing

46 companies are dually-listed on the US/London and TASE

TA-25

Index

companies are

included in the

7TA-75

Index

companies are

included in the

22TA-100

Index

companies are

included in the

29TA

MidCap-50

Index

companies are

included in the

6TA

Tech-Elite

Index

companies are

included in the

26TA

Blue-Tech

Index

companies are

included in the

33

The prominent companies:

The Benefits of Dual Listing

From the companies’ point of view:

From the Israeli investor’s point of view:

More Israeli

investors -

institutional and

individual and

a better

diversification of

the investors

base.

Index funds

(TA-25,TA-75,TA-

100 and

Tech funds)

TA-25 & TA-100

companies benefit

from index-

options trading

13-hour

continuous

trading in Tel-Aviv

& the US from

09:45 AM to

11 PM, local time

Raising money

on TASE

More convenient trading hours and

lower transaction costs

Dual Listing – Harmonized Rules

Which companies can dual list?

Regular Track Fast Track

Companies that have been traded on the

NYSE, the NASDAQ Global Market* or the

NYSE MKT for at least one year.

Companies with market capitalization

exceeding US$ 150 million (regardless

of how long they have been listed)

* Companies that have been traded on NASDAQ Capital Market (Small Cap) for at least one year with

market capitalization exceeding US $35 Million

Dual Listing – Harmonized Rules

How

does a

company

dual list?

File a short, technical, registration form

Enclose:

• The latest 20-F/10-K report filed.

• The filings since the publication of the latest

annual report or prospectus.

No listing fees

Trading opens two days after the

registration form is published

Dual Listing – Harmonized Rules

Financial statements should be submitted

by the date designated according to the

U.S. law

Corporate immediate releases should be

submitted on days stipulated in Israeli

Securities Law

All financial statements submitted and filings

published in the U.S. (No translation to

Hebrew is required)

What are the

reporting

requirements?

Prominent Dual Listed Companies

Symbol

Market

Capitalization

July 31, 2015 ($M)

Total Daily Trading Volume on

TASE & US

July 31, 2015 YTD ($K)

Share of TASE Trading

Volume

July 31, 2015 YTD

Nice Systems NICE 3,723 18,499 %38

Elbit Systems ESLT 3,516 5,771 %78

Tower Semiconductors TSEM 1,047 21,117 26%

Ituran ITRN 535 679 73%

Sapiens * SPNS 510 875 38%

Ezchip Semiconductor EZCH 490 2,804 %19

Nova measuring NVMI 335 1,146 44%

Compugen CGEN 307 1,378 23%

Mazor Robotics MZOR 294 1,028 51%

Gilat Satellite GILT 245 422 53%

Evogene EVGN 229 309 82%

Pluristem * PSTI 189 1,576 57%

Protalix * PLX 156 772 30%

Kamada KMDA 140 578 %77

* Incorporated not in Israel

High-Tech Companies – Before & After Dual Listing

Share Portion of TASE

Trading VolumeTrading

Volume % of

change after

dual listing

Average Daily

Trading

Volume

TASE + U.S.A

Average Daily Trading

Volume, U.S.AMarket Cap

July 31,

2015 ($M)

Dual Listing

DateCompany

July 31, 2015

YTD

3 months after

Dual listing

3 months

after Dual

listing ($K)

3 months

after Dual

listing ($K)

3 months

before dual

listing ($K)

8%9%470%58,70353,47410,2947,5328/2013Opko

33%31%421%11,0307,6272,1181,9552/2015Ormat Techno.

7%6%81%6,9046,4643,8165143/2011LivePerson

57%56%1,427%2,3921,06015718912/2010Pluristem

16%9%863%3,1202,84932417712/2010Allot

30%32%79%4,4513,0232,4901569/2010Protalix

10%31%80%2411651346412/2009Cyren

8%15%549%2,3762,015366225/2012PhotoMedex

Thank you for your attention