The company was founded in 1972 and makes high-quality progressive
lenses and molds to treat presbyopia, a condition of the eyes
precluding focus on nearby objects that typically strikes people over
45 years of age. Its innovative technology incorporates several
optical strengths in a single pair of its advanced lenses, enabling
gradated shifts from seeing distant and nearby objects.
The company also develops software to plan advanced lenses. The
software is based on an algorithm developed in-house, that optimizes
lens structure depending on the needs of the customer.
The market for hi-tech contact lenses is a vast $12 billion a year,
and is expected to grow at 6.3% a year, reaching $18.6 billion in
2010. People are becoming increasingly aware of the advantages of the
hi-tech lenses, for one thing. For another, the population is aging.
Shamir Optical also means to reach entirely new areas, such as China,
India, eastern Europe and South Africa.
The offering, after the IPO, will make Kibbutz Shamir one of the
richest kibbutzim in Israel. The kibbutz will be selling 490,000
shares for $6.4 million. Each of the kibbutz's 270 members will
receive $470,000.
The shares were priced at $14 and they opened for trading at $16.60,
reflecting good demand for the issue. (Nasdaq:SHMR)
Shamir Optical Industry, in which Kibbutz Shamir owns 80.5% and FIBI
Holdings 9.8%, has sold 3.4 million shares. at a price of $14 per
share. The offering would valued Shamir Optical at close to $190
million, premoney. Its lead underwriters were William Blair and CIBC.