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Israel Eyes US IPO for Defense Giants
28 Jun
Summary
- Israel considers US IPOs for defense firms IAI and Rafael.
- Companies aim to sell up to 30% stakes by year-end.
- US listing could ease disclosure requirements for defense firms.
Israel is actively considering listing its state-owned defense giants, Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems, on US stock exchanges. This potential move, explored through discussions with investors and regulators in mid-July, could involve primary or dual listings.
The primary motivation behind seeking a US listing is to leverage potentially more lenient disclosure regulations for companies involved in classified national security projects. Government officials and representatives from IAI and Rafael are scheduled to visit the United States to assess these possibilities.
This privatization initiative aligns with a significant scaling up of Israel's defense sector since October 2023. The government is also considering other measures, such as easing executive pay restrictions and accelerating approval processes, to enhance global competitiveness.
Plans are in motion to potentially sell stakes of up to 30% in both IAI and Rafael by the close of the year. IAI is valued at approximately 100 billion shekels ($33.7 billion), while Rafael is valued at around 60 billion shekels.
