Mellanox Technologies (NASDAQ:MLNX), a leading supplier of semiconductor-based, high-performance, InfiniBand and Ethernet connectivity products that facilitate data transmission between servers, communications infrastructure equipment and storage systems, announced that it intends to list on the Tel Aviv Stock Exchange.
Becoming a dually listed company has one main benefit for the company, as it gives local Israeli institutional investors the ability to trade in the stock, something that may be prohibited if the stock only trades in the United States. This trend to dual list has produced handsome returns for investors in other companies, such as Silicom (NASDAQ:SILC) and Cellcom (NYSE:CEL). Leading up to, and immediately after the listing in Tel Aviv, the stock usually makes a nice run in the United States.
It is important to keep in mind that Mellanox went public in February, which means that it will be coming out of a lock-up in early August. This could pressure the stock as insiders look to lock-in profits, and take some money off the table. The company still has not announced the actual date for the dual listing.
Keep an eye on Mellanox as a very interesting trading opportunity.
MLNX 5-month chart:
Disclosure: The author does not hold positions in any of the companies listed above.