Israel Aerospace IPO postponed until 2022

Tel Aviv Stock Exchange / Photo: Shlomi Yosef , Globes

The TASE offering has been slowed down by its complexity. The offering requires various regulatory approvals, among other things because of its security sensitivities.

Israel Aerospace Industries (IAI) IPO on the Tel Aviv Stock Exchange is not expected to take place this year, even though the four underwriters were chosen three months ago.

The government has been pushing forward intensively with the IPO for more than 30 months and the process was officially started in November 2020, when approved by the ministerial committee for the sale of shares to the public, but due to delays the offering is unlikely to go ahead before 2022.

The IPO has been slowed down by its complexity. The offering requires various regulatory approvals, among other things because of its security sensitivities, including which activities can be listed in a public prospectus. Another problem has been obtaining agreements with the different workers committees involved.

The IPO, it is believed, will only be open to Israeli investors and overseas underwriters and investors will not be eligible to participate.

When the IPO eventually gets underway, it is planned to be one of the largest-ever offerings held on the TASE with 25% of the share of the government-owned defense company sold for NIS 3 billion. The four underwriters chosen to support the IPO are Discount Capital, Poalim IBI, Leader Capital Markets, and Barack capital.

Published by Globes, Israel business news - en.globes.co.il - on September 12, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Tel Aviv Stock Exchange / Photo: Shlomi Yosef , Globes
Tel Aviv Stock Exchange / Photo: Shlomi Yosef , Globes
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