Israeli smart glass company Gauzy began trading on the Nasdaq this past Thursday with an initial public offering price of $17. Photo: Gauzy.

Israeli smart glass company Gauzy began trading on the Nasdaq this past Thursday with an initial public offering price of $17. It trades on the Nasdaq Global Market under the symbol “GAUZ.”

The Tel Aviv-based company is raising $75 million at a company valuation of around $287 million. The market cap is less than what officials had hoped for in its first confidential prospectus in 2022—Gauzy delayed a move to go public in 2023 due to a downturn in the technology sector. Gauzy’s underwriters (Barclays, TD Cowen, Stifel, B. Riley Securities and Beech Hill Securities) hold an option to buy more shares, increasing the amount raised by around $11 million.

Gauzy plans to use the net proceeds from the offering to purchase equipment and materials for the expansion of its production lines, research and development, marketing and working capital, including bonus payments to officers, employees and consultants.

Gauzy develops, manufactures and distributes smart glass technologies for several industries, including automotive, aeronautics and architecture. It has subsidiaries and entities in Germany, France, the U.S., Canada, China, Singapore and Dubai, and its biggest market is in the U.S.

The company was founded in 2009 by CEO Eyal Peso, chief technical officer Adrian Lofer and engineer Dmitry Dobrenko. Peso says Gauzy’s architecture division develops and manufactures liquid crystal smart glass with polymer dispersed liquid crystal technology and suspended particle device technology. The division accounted for 15-20% of Gauzy’s business in 2023. Its architecture core markets include healthcare, hotels, offices, retail shops and residential buildings.

“In order to capture more business, we needed to go public,” says Peso, adding that Gauzy’s architecture division is going to benefit as its key sectors, aeronautics and automotive, grow.

“Once we’re strong in aeronautics and automotive, we’re going to be unbeatable in architecture,” explains Peso. “Let me tell you why. In aerospace, we’re a tier-one supplier. We’re not just making materials but the full glass window. That knowledge of how to make the perfect glass for an aircraft with all the different regulations helps us improve upon our architectural smart glass, which gives our customers confidence.”

Gauzy’s aeronautics customers include Airbus, Boeing and Embraer.

Peso explains that Gauzy officials learned that the key to success for a smart glass company is to focus on what you know and not to stretch yourself too thin, such as providing a full glass unit.

“You can’t be a general contractor everywhere,” he says. He adds that Gauzy’s goal is to support the glass industry.

“We like to compare our business model to the Pillsbury business model,” he says. “In Tel Aviv, you can eat a fresh baguette in every grocery store. Twenty years ago, you weren’t able to do that. Now, you have the dough, the oven and the process, which means that every grocery store can make it. That’s how we treat fabricators. They’re doing an amazing job of processing, fabricating and cooking glass. We’re not in the business of cooking glass, but we’re providing interlayers and a process that has evolved from aeronautics to supply great products in local markets.”

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