Microheat chooses Morgan Stanley as underwriter for IPO

April 20, 2006. The de-icing company closed a $15 million financing round, ahead of its planned IPO in January 2007 at a company value of $500 million.

Shmulik Shelah 20 Apr 06 15:51

Israeli de-icing start-up Microheat completed another financing round on Tuesday. As ?Globes? reported last week, the company raised $15.1 million at a company value of $120 million (before dilution). This was the company?s last financing round before an IPO on Nasdaq.

Until now, Microheat has only raised money from private investors. This round was the first in which venture capital funds participated. One investor is reportedly Delek Automotive Systems CEO Gil Agmon, who invested several million dollars in the company in its previous financing round in December 2005.

A number of new investors participated in Microheat?s present round: Mivtach Shamir Holdings Ltd. (TASE:MISH) invested $6 million for a 3.8% stake; and Israel Infinity Venture Capital invested $1 million.

Including the present round, Microheat has raised $65 million to date in five financing rounds. The company is due to go public on Nasdaq at a company value of $500 million. Sources inform ''Globes'' that Morgan Stanley has been chosen to lead the IPO, scheduled for January 2007, after Microheat?s performance in 2006 becomes known. The company is projected to achieve a positive cash flow in November, ahead of its IPO.