True pragmatic patriotic innovator: Check Point CEO recommends US IPOs

Check Point CEO recommends US IPOs

Gil Shwed: Israeli technology companies considering an offering should go to the US and not to Israel.

18 July 13 16:11, Ron Steinblatt

“I would recommend to Israeli technology companies considering an offering to go to the US and not to Israel, because that’s where the competitors and investors relevant to their market are found,” said Check Point Software Technologies Ltd. (Nasdaq: CHKP) chairman and CEO Gil Shwed at the press conference, following the publication of the company’s financial report for the second quarter of 2013. Shwed added, “We’re a small country with a tiny capital market. What percentage can be invested here in technology companies? That does not mean that the Israeli market is bad or that there are no smart and talented people here. The problem is global, and regrettably, the Israeli market is not attractive for technology companies.” Shwed remarks about the Israeli capital market come against the backdrop of the decision by Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) to delist from the TASE, which will come into effect at the end of August.In defending Check Point’s NIS 1.65 million in tax breaks in 2006-11, Shwed said, “Israel had a policy of encouraging companies to move their business here. The fact that we choose to base our center of operations here should not be taken for granted. We struggled to bring employees from outside Israel and concentrate the activity here. Thanks to the activity of Check Point and companies like us, we’ve brought to Israel more business and income. I can tell you that, from a historical perspective, 20 years ago, when we deliberated where to build the business and register, Israel’s policy was an important consideration in the decision to stay here.

“The amount of the tax break is below the amounts that Check Point has brought to Israel. In the past two years, we’ve paid double the amount under the old policy, so all the media headlines refer to a situation that ended for us two years ago.”

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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