Israeli defense companies have become hot merchandise, and some of the publicly traded ones have seen their share prices rise steeply since the start of the Swords of Iron war. Yesterday, TSG IT Advanced Systems filed a prospectus for an IPO on the Tel Aviv Stock Exchange.
According to market estimates, the company will seek to float 20-25% of its shares and raise NIS 120-160 million, at a pre-money valuation of some NIS 500 million.
TSG provides advanced software and technology solutions to the defense market. It develops and produces command and control systems at the strategic and tactical levels and intelligence systems with analytical capabilities based on artificial intelligence and advanced algorithms. The company is also a developer of communications networks monitoring systems.
According to the company, its command and control systems support decision making by IDF commanders from the General Staff downwards. The company also produces aerial video and image processing systems for target detection and acquisition, and maritime intelligence systems. TSG is a participant in the development of the Arrow and David’s Sling air defense systems.
The company is currently owned in equal shares by Israel Aerospace Industries and Formula Systems (TASE: FORTY). Since 2021, the company has been headed by Arik Kilman, who has decades of experience in software and technology. The flotation is being led by Omri Levi’s Active Underwriting. The company’s debt is rated A with a stable outlook by S&P Maalot, which will enable it to issue bonds at a later date.
The company’s prospectus and presentation indicate that the defense sector represents about 70% of its business.
Published by Globes, Israel business news - en.globes.co.il - on June 18, 2024.
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