The selloff in Internet and biotechnology shares is threatening to cut short the fastest start to Israeli stock offerings in overseas markets since 2000. Wix.com Ltd. (WIX), the provider of online tools to create websites, scrapped a share sale on March 31 after the stock tumbled 26 percent that month, paring the rally since its Nov. 5 initial public offering to 39 percent. On April 4, Matomy Media Group Ltd., an online marketing company based in Tel Aviv, scuttled plans for an initial public offering in London. Technology shares are slumping across the globe, led by a 7.4 percent plunge in the Nasdaq Composite Index (CCMP) from a 14-year high reached in March, amid concern valuations had reached unwarranted levels. The rout is being felt acutely in Israel, which has 64 companies traded on the Nasdaq, the most of any country outside the U.S. after China. The market has become more sensitive to risk for foreign deals, Josef Schuster, founder of Chicago-based IPOX Schuster LLC, said in an April 10 telephone interview. Corporate actions are not going to be as easy as they used to be. With stock trading slowing in Tel Aviv, Israeli companies have been turning increasingly to … Continue reading
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