Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ: KTOV) closed the chapter of Israeli IPOs in the U.S. in 2015. But more Israeli technology and biotech companies are expected to list in the U.S. this year depending on market demand. Kitov seems poised to benefit from a surge in interest in Israeli stocks.
According to EVP of Listings Services at NASDAQ, Nelson Griggs, at least three Israel-based companies have already done their initial filing for IPO in the U.S. for this year. Those companies will be looking to enter the U.S. public market when the environment is conducive.
Some four Israeli companies with market value in the band of $500 to $750 million could raise between $75 and $130 million when they IPO in the U.S., according to Griggs. Of the various non-U.S. companies listed on NASDAQ, the majority are based in Canada, China followed by Israel. That’s a sign of appetite for Israeli stocks in the U.S. and more companies in the country are hoping to capitalize on that goodwill to tap in the U.S. investor pool.
Kitov closes chapter on a slow year
Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ: KTOV)’s September 2015 listing in the U.S. closed the chapter of Israeli companies that listed in the U.S. on that year. But the year only saw 7 Israeli IPOs compared to 12 in the previous year. Nevertheless, Kitov shares could edge up as investors show more love for Israeli companies.
Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ: KTOV) beyond the IPO wave
But beyond the IPO wave, Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ: KTOV) has company-specific catalysts that could drive gains in the stock in the next few years. The company recently updated on its clinical programs, saying that a study of its drug candidate called KIT-302 met key FDA standards.
Following the success of the study, Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ: KTOV) said it had moved closer to seeking FDA approval of KIT-302 later this year. The company is also gearing up to bring the drug to market in 2017.