• Tue. Oct 3rd, 2023

Market Capitalization of Blue and White Companies Rises by $100 Million on Wall Street

Jun 18, 2021

The IPO of an Israeli software corporation, WalkMe, on Nasdaq has taken the aggregate value of companies, based in Israel, on Wall Street to a figure of $300 billion. As per data collected by Oppenheimer Investments Bank, the number has risen by $100 billion, ever since the year began. From this figure, a surge of $75 billion was reported in newly launched companies, which have either merged with SPAC companies or gone public, whereas $25 billion was attributed to a rise in the value of already existing companies.

The portfolio for the State of Israel, in New York, consists of a total of 85 companies. It recorded a surge of over 12% since the month of January of this year. This number is larger than the one recorded at Nasdaq of 9%, indicating a rise in the value. The change in this value further shows the overall value of blue and white companies in the U.S., which have exceeded the value of the 507 companies that are currently trading on the stock exchange in Tel Aviv. The latter showed a total value of $297 billion just recently. Currently, there are 52 such firms that are trading on both exchanges.  

The co-CEO of Oppenheimer, Avivit Mannet-Kalil, stated that the success that the large IPOs of blue and white companies on Wall Street is just what the economy of the country needs right now. She added that the increase in value creates long-term growth, allowing companies to readily expand. Recalling a difficult and opposite situation that occurred in 2000, she said that the companies currently having success with their IPOs is due to the fact that they have been established in and operating under the health SaaS model. It enables blue and white firms to anticipate and assess what lies ahead. 

The co-CEO went on to assert that there are two segments that are not enjoying the same success, namely the autonomous and electric vehicle industry. She maintained that this is because the technology being used is futuristic and has the potential to fail. 

Mannet-Kalil further talked about the current situation in the market, saying that there is a significant inflow of money, with the interest rates being at a lower figure than usual. In her words, this wave of high investments and low-interest rates could continue on for two to three additional years, given that the money is readily being poured into the system and there is increased demand for these firms. 

As of now, the various markets in the State of Israel are hot and thus, Israeli companies coming to Wall Street are enjoying a strong backwind. Just last week, Monday.com successfully completed the largest IPO from Israel to date, with a total value of $6.8 billion. Right now, it is trading at a value of nearly $9 billion. WalkMe also became a part of the club this week by raising a sum of $286 million at a valuation of $2.5 billion.

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