Israel Aerospace Industries Poised for Historic 100 Billion Shekel IPO

Israel Aerospace Industries (IAI), the powerhouse behind the Arrow 3 air defense system, is advancing toward a monumental initial public offering (IPO) on the stock exchange, valued at an unprecedented 100 billion shekels, positioning it alongside defense giant Elbit Systems.

Roi Kahlon, Director of the Government Companies Authority, disclosed the plans in an interview with Ynet's "Mamon," also revealing that Rafael Advanced Defense Systems is preparing for its own IPO, estimated at 50-60 billion shekels.

In a pointed message to IAI's workers' committee ahead of a conference marking 50 years of government companies, Kahlon criticized past opposition to privatization: "If the company had been issued in 2020, today every employee could have realized options worth half a million shekels." The move is expected to proceed in the coming months, provided regulatory and bureaucratic hurdles are cleared.

IAI is experiencing its strongest period ever, with consistent quarterly growth. For 2024 profits, the company will transfer a record 770 million shekels in dividends to the state treasury. Its order book is fully booked for years ahead, making it a prime opportunity for investors.

While Prime Minister and Finance Minister support the initiative, the Defense Ministry expresses concerns that public trading could compromise operational secrecy and Israel's strategic interests.