The US-based Broadband communications solution giant
(Nasdaq:PLCM) today listed for trade on the Tel Aviv Stock Exchange.
Trade in Polycom shares is to commence on Tuesday. The firm's market value is $2.3 billion.
Conference-call systems maker
(Nasdaq:ACCD) is Polycom's Israeli connection. Accord went public in June 2000 and was acquired by Polycom in December for $339 million. Polycom's listing on Tel Aviv will make it easier for it to complete its acquisition of Accord via a stockswap.
Despite Polycom's high market value, at this stage it will not be trading on the Maof-25 index of blue chips because of the tax imposed on capital earnings generated by investment in the equity of foreign firms.
TASE economic division manager Ronit Harel Ben-Zeev welcomed Polycom's Tel Aviv listing. Harel Ben-Zeev hopes that other foreign companies will follow suit, especially those overseas firms with Israeli ties. The TASE has recently filed a request with the Tax Authority to give the same tax status to both Israeli and foreign companies, and it looks as though the Authority is willing to consider this.
The Authority also seeks to amend the law so that the same tax regulations will apply to both Israeli and foreign shares. The TASE management believes this will encourage foreign companies to list in Tel Aviv.