The IPO Buzz: Israel’s Gauzy Ltd. Prices IPO at $17.00 – Low End; Stock Dips in NASDAQ Debut

Israeli light control company Gauzy Ltd. (GAUZ) upsized its IPO slightly at pricing to 4.41 million shares – up from 4.17 million shares in the prospectus – and priced the IPO at $17.00 – the low end of its $17.00-to-$19.00 range – to raise $75.0 million on Wednesday night, June 5, 2024. Gauzy sold 245,098 more shares than the total number specified in the prospectus. Gauzy’s stock slipped in its NASDAQ debut – opening at $16.70 – 30 cents below its $17.00 IPO price – at 11:53 a.m. EDT on Thursday (June 6, 2024) on volume of 249,910 shares. (Editor’s Note: This column, published Wednesday night, was updated early today – Thursday, June 6, 2024 – to add news on Gauzy’s NASDAQ debut.)

Barclays, TD Cowen, Stifel, B. Riley Securities and Beech Hill Securities were the joint book-runners. The company recently added B. Riley and Beech Hill to the book-running team.

OIC Growth Fund had indicated an interest to purchase, directly or by way of an affiliate, up to 833,333 ordinary shares – or up to 20 percent – of the stock in the IPO, the prospectus says. 

In the prospectus, Gauzy cites conditions in Israel – following the attack by Hamas on Oct. 7, 2023 – as among the risk factors:

“None of our production lines or capabilities have been impacted since the war broke out on October 7, 2023. We cannot currently predict the intensity or duration of Israel’s war against Hamas, nor can we predict how future developments in this war will ultimately affect our business, operations and financial condition or Israel’s economy in general.” 

Smart Glass for Your Benz

Gauzy Ltd. (GAUZ), based in Tel Aviv, says its light control products replace traditional mechanical products such as shades, blinds and mirrors.

“Our key products include suspended particle device, or SPD, and liquid crystal, or LC, films for smart glass applications, as well as camera monitoring systems, or CMS, and other advanced driver assistance systems, or ADAS, solutions,” the prospectus says.

“We have established serial production capabilities, either directly or through sub-contracts, with leading aerospace, automotive and architecture companies, including Boeing, Honda, Mercedes, Ford, BMW, and Avery Dennison,” the prospectus says. “We benefit from both secular and regulatory tailwinds that are driving the rapid adoption of light and vision control technologies. In addition to our core markets, we believe that our products may have a multitude of tangible applications in other areas such as railway, maritime, specialty vehicle, private security and consumer appliances.”

Gauzy intends to use the IPO proceeds for working capital, the prospectus says.

The company was founded in 2009 by Eyal Peso and Adrian Lofer. Eyal Peso has served as CEO and chairman since the company’s inception. Adrian Lofer is the chief technology officer.

Gauzy is not profitable, according to the most recent financial statements in the prospectus: The company reported a net loss of $74.0 million on revenue  of $85.28 million for the 12 months that ended on March 31, 2024.

Stay tuned.

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