Vote of confidence: Nofar Energy chairman buys ₪5 million in shares day after offering canceled

A day after the preferred share offering was canceled, controlling shareholder Ofer Yannay is signaling the market by purchasing ordinary shares in a transaction worth approximately ₪5 million. The move represents a public vote of confidence in the company following the failed capital raise.

Ofer Yannay, chairman and controlling shareholder of Nofar Energy, purchased company shares totaling approximately ₪5 million. The purchase was executed a day after the company canceled a preferred share offering at the last minute, in a move interpreted as a vote of confidence in the company and its stock following the failed capital raise.

A day after the drama surrounding the cancellation of the preferred share offering, Nofar Energy controlling shareholder and chairman Ofer Yannay is sending a clear message of confidence to the capital market. According to a company filing, Yannay yesterday (Sept. 23) purchased ordinary shares of the company for approximately ₪5 million. The purchase, executed through a fully owned private company, represents a significant vote of confidence in the firm just one day after it was forced to shelve its plan to raise capital via a new financial instrument.

In the transaction, Yannay bought 32,000 shares at a price of ₪155.75 per share. Following the purchase, Yannay's stake in the company rose from 26.77% to 26.85% of equity. Share purchases by a major interested party, particularly a controlling shareholder, are viewed by the market as a positive sign indicating belief in the company's potential and current share price, especially when coming as a response to a negative event.

### Reminder: The dramatic cancellation
Yannay's move comes against the backdrop of Nofar Energy's surprising announcement two days ago (Sept. 22) regarding the cancellation of its planned preferred share offering. The cancellation came just hours after the company reported opening a tender for institutional investors, in what had appeared to be a preliminary step toward a significant capital raise.

In its cancellation notice, the company cited several reasons for the decision, including the local market's lack of maturity for the preferred share financial instrument, technological gaps in information systems, and restrictions stemming from prior agreements with major anchor investors in the company, Phoenix and Migdal. The sudden cancellation was seen as a failed capital raise and a reputational blow to the company, delaying its expansion plans.

### Significance of the share purchase
Yannay's share purchase is a classic "put your money where your mouth is" move. While the institutional market apparently expressed reservations about the proposed offering, the controlling shareholder signals his belief that the company's intrinsic value is higher and that the stock represents a buying opportunity. The move is designed to curb potential negative sentiment surrounding the share following the offering's cancellation and project stability and confidence to existing and potential investors.

Preferred shares, the instrument Nofar attempted to issue, are a hybrid instrument combining features of equity and debt, typically conferring dividend preference. The objective of the move was to raise capital for continued growth without significantly diluting ordinary shareholders' voting power. Although the attempt failed at this stage, Nofar stressed that this is not the final word and that the company will examine additional ways to raise capital in the future. Yannay's purchase reinforces the message that the company is continuing business as usual and that its leadership is committed to its long-term success.