Underwriters selected to lead Israel Aerospace IPO

Israel Aerospace Industries UAV / Photo: IAI

IAI will attempt to raise $1 billion at a $4 billion valuation, in one of the TASE's biggest-ever flotations.

There has been progress in the planned Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE) with the selection of four underwriters to lead the flotation - Discount Capital, Poalim-IBI, Leader Capital Markets, and Barak Capital.

The IPO will be one of the biggest ever on the TASE with IAI expected to raise about $1 billion at a company valuation of $4 billion. As far as is known, the shares will only be offered to local investors with no foreign underwriters or foreign investors participating due to the Ministry of Defense's position on the matter.

The offering has received all the required approvals from the government although the IPO will not move forward until a new government is formed. The fact that IAI is already a public company with bonds worth NIS 460 million traded on the TASE will make further progress much easier because the company already has an existing prospectus. Nevertheless, IAI will be required to prepare supplementary information such as a valuation estimate, a presentation and perhaps further details about its activities.

IAI, which is fully owned by the government, was founded in 1966 and operates in four major areas - aviation, defense electronics (Elta), military aircraft, and missile systems and space. Most products are for the defense sector and are exported.

In the first quarter of 2021, IAI reported revenue of $1 billion and net profit of NIS 41 million, up 24% from the corresponding quarter of 2020.

Published by Globes, Israel business news - en.globes.co.il - on June 2, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Israel Aerospace Industries UAV / Photo: IAI
Israel Aerospace Industries UAV / Photo: IAI
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018