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09/15/2020 | Press release | Distributed by Public on 09/15/2020 03:36

The Tel-Aviv Stock Exchange Launches a New Index: TA-Cleantech

The Tel-Aviv Stock Exchange Launches a New Index: TA-Cleantech

Press Release
15/09/2020

The New Index is Expected to Comprise Shares of 12 Companies with a total Market Cap of NIS 32 Billion

Tel Aviv, September 15th, 2020 - The Tel-Aviv Stock Exchange (TASE: TASE) announced today the launch of a new index that will comprise shares of companies included the cleantech subsector, under the technology sector.

Global investments in renewable energy have been on the rise and in 2019 were reported to total US$ 300 billion. In Scandinavia for instance, 100% of electricity production is based on renewable energy, and in many other countries renewable energy accounts for 60% to 80% of electricity production. These rates are likely to grow even further, both for economic considerations and due to 'green regulation'. While electricity production by renewable energy in Israel is expected to reach only 9% by the end of 2020, the enactment of green regulation alongside the development of the local cleantech sector is likely to expand the use of renewable energy. Renewable energy is expected to account for 30% of electricity production by 2030.

Israeli companies have a strong presence in the global renewable energy sector. The market cap of companies in the cleantech subsector that are listed on TASE exceeds NIS 32 billion. 7 cleantech shares are currently included in the TA-125 index, out of which two have joined the TA-35 flagship index. In comparison, the market cap of oil/gas production companies is half that of the cleantech companies, and only one is included in the TA-35 index.

The launch of a local cleantech index, which has been contemplated for several years, is made possible now that the cleantech companies listed on TASE have reached the numbers and market cap required for a deep index that is representative of this growing sector. According to the proposal, the new index will include the shares of companies that TASE has classified to the cleantech subsector, with a weight cap of 15% for shares included in the index.

Presented below are the characteristics of the index, based on the simulation performed on August 31, 2020:

1) Number of shares in the index - 12

2) Market cap - NIS 32 billion

3) Public float value - NIS 25 billion

4) Composition of the index, by market cap indices:

a) Shares included in TA-35 - 2

b) Shares included in TA-90 - 5

c) Shares included in TA-SME60 - 1

d) Shares included in TA-Growth - 4

The record date for determining the composition of the index will be the end of trading on October 15, 2020 (record date for the November monthly update) and the scheduled launch date of the index is November 8th, 2020 (the date of the November update).

Presented below is a simulation of the composition of the proposed index as of August 31, 2020:

TA-Cleantech (As of August 31, 2020)
No. Share Market cap in NIS millions Expected weight in index
1 Ormat Techno 10,607 15.00%
2 Enlight Energy 4,936 15.00%
3 Energix 7,492 15.00%
4 Augwind 2,194 15.00%
5 Electreon 2,495 15.00%
6 Doral Energy 1,679 8.27%
7 Ellomay 1,214 7.69%
8 Meshek Energy 468 2.96%
9 Solegreen 495 2.89%
10 Brenmiller 273 1.72%
11 Apollo Power 150 0.74%
12 Sunflower 207 0.73%
Total

32,210

100%
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