Israel Aerospace ready for IPO, awaits government approval, CEO says By Reuters

By Steven Scheer

JERUSALEM (Reuters) – State-run Israel Aerospace Industries is ready for an initial public offering in Tel Aviv but is awaiting approval from the government, IAI Chief Executive Boaz Levy said on Sunday.

In November 2020, a ministerial privatization committee approved a plan under which Israel could bring in billions of shekels by selling 49% of the country’s largest defense firm IAI on the Tel Aviv Stock Exchange.

“We are moving towards an IPO,” Levy said at an investor conference at TASE. “Last year our business results continued IAI’s growth trend. We are currently experiencing outstanding performance.”

He said that according to the government’s already approved decision, the public offering of the minority stake in IAI will be carried out as soon as the ministries of finance and defense “come to a decision that it is time to do it”.

These ministries declined to comment.

Israeli media reported that the need to reach an agreement with IAI’s union and the weakness in the stock market over the past two years caused the IPO to be postponed.

IAI produces defense and civilian products, including aircraft, air and missile defense, unmanned aerial systems (UAS), ground robots, precision-guided weapons, ammunition, satellites and systems for space activities.

IAI announced record profits of $416 million in the first nine months of 2024, up 74% year-on-year.

IAI’s backlog of orders rose by more than $7 billion last year to $25 billion at the end of September, as sales rose 13% to $4.4 billion as multi-front military conflicts in the country increased.

It has bonds worth 156 million shekels ($43 million) traded on TASE.

In June, IAI paid $155 million in dividends to the Israeli government.

($1 = 3.5995 shekels)