Written by Stephen Shear
JERUSALEM (Reuters) – Boaz Levy, CEO of state-run Israel Aerospace Industries, said on Sunday that the company was ready for an initial public offering in Tel Aviv but was waiting for the green light from the government.
In November 2020, a ministerial privatization committee approved a plan through which Israel could sell up to 49% of IAI, the country's largest defense company, on the Tel Aviv Stock Exchange, bringing in billions of shekels.
“We are heading towards an IPO,” Levy said at an investor conference on the Tokyo Stock Exchange. “Last year, our results continued IAI's growth trend. We are currently experiencing exceptional performance.”
He said that according to the government's already approved decision, there will be an initial public offering of a minority stake in IAI once the finance and defense ministries “reach a decision that it is time to do it.”
These ministries declined to comment.
Israeli media reported that the need to reach an understanding with the Federation of Israeli Industries, and the weakness of the stock market over the past two years, led to the suspension of the IPO.
IAI produces defense and civil products including aircraft, air and missile defence, unmanned aerial systems (UAS), ground robotics, precision guided weapons, munitions, satellites and space activity systems.
Over the first nine months of 2024, IAI reported record profits of $416 million, up 74% year over year.
Sales rose 13% to $4.4 billion amid the country's growing multi-front military conflicts, while IAI's order backlog increased by more than $7 billion over the past year to $25 billion at the end of September.
It has bonds worth NIS 156 million ($43 million) traded on the Tokyo Stock Exchange.
In June, Israel Aerospace Industries paid a $155 million dividend to the Israeli government.
($1 = 3.5995 shekels)
