Israel Aerospace Industries IPO Update

By Steven Scheer
JERUSALEM (Reuters) – State-run Israel Aerospace Industries (IAI) is prepared for an initial public offering (IPO) in Tel Aviv, pending government approval, according to CEO Boaz Levy.

A ministerial privatisation committee approved a plan in November 2020 for Israel to sell up to 49% of IAI, the largest defense firm in the country, on the Tel Aviv Stock Exchange, potentially generating billions of shekels.

"We are moving towards an IPO," Levy stated at an investor conference at the TASE. "Our business results last year continued IAI's growth trend. We are currently experiencing phenomenal performance."

Levy noted that the IPO of a minority stake would occur as soon as the finance and defense ministries determine it is the right time, following a government decision that has already been approved.

Israeli media reports indicate that discussions with IAI's union and the weakness in the stock market over the past two years have delayed the IPO.

IAI is involved in producing both defense and civilian products, which include aircraft, missile defense systems, unmanned aerial systems (UAS), ground robotics, precision-guided weapons, munitions, and satellite systems for space activities.

In the first nine months of 2024, IAI achieved a record profit of $416 million—a 74% increase from the previous year. Sales increased by 13% to $4.4 billion, partly driven by the country's multi-front military conflicts. The backlog of orders also rose over $7 billion to $25 billion by the end of September.

IAI has 156 million shekels ($43 million) worth of bonds traded on the TASE and paid a dividend of $155 million to Israel's government in June.

(Exchange rate: $1 = 3.5995 shekels)