An Israeli delegation led by Government Companies Authority deputy head Maayan Harel will visit New York next month to investigate the possibility of the flotation of defense companies on Nasdaq, "Globes" has learned. The delegation will include representatives of defense companies Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems as well as the Ministry of Defense.
Over the course of five days in July, the Israeli delegation will meet with regulatory authorities, lawyers and underwriters, to formulate a position paper on the ability and need to issue government defense companies or their subsidiaries and the possibility of dual listing them on both Nasdaq and the Tel Aviv Stock Exchange (TASE).
The planned visit comes, among other things, after tensions with Israel Securities Authorities on IAI’s IPO on the TASE, given the disclosure obligations to investors versus the possibility of maintaining confidentiality for security reasons. Among other things, the members of the delegation are expected to examine how to deal with classified issues on Nasdaq, assuming that this may be much easier than in Israel. The IPOs of IAI and Rafael have been on the agenda for years, and the process regarding IAI is finally progressing.
Will Rafael also hold an IPO?
IAI is considered readier for an IPO, as it is a company with tradable bonds that publishes financial statements. The Government Companies Authority previously assumed that it would be possible to issue at a valuation of NIS 70-100 billion after years of record activity. IAI operates through four business divisions and revenue peaked in 2025 at $7.4 billion, gross profit of $1.4 billion and net profit at $712 million. IAI has 15,000 direct employees and its main customer is Israel’s Ministry of Defense.
The flotation of Rafael further away, but the IPO is also being accelerated by the Government Companies Authority. At the end of March, the Minister responsible for government companies, David Amsalem, asked the Cabinet Secretary to convene the Ministerial Committee for Privatization Affairs, with the aim of setting the outline plan for Rafael's IPO during the current government's term. At the same time, the Government Companies Authority head Roi Kahlon, presented a plan to the Ministry of Finance director general, in which 30% of the company's shares would be sold to institutional investors, and an IPO would subsequently be held on the TASE.
According to the plan, two-thirds of the proceeds from the sale would be invested back into the company. The move comes after financial reports reflecting a record year for defense companies: Rafael's revenue last year was NIS 21.67 billion, net profit was NIS 1.35 billion, and the backlog of orders swelled to more than NIS 74 billion.
Published by Globes, Israel business news - en.globes.co.il - on June 21, 2026.
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