A state delegation leaves for New York. On the agenda: Issuance of defense companies

● Audititi Zinka, Amdocs and REE at a low: news from the Israelis on Wall Street
● In the US, they are going on a trillion dollar shopping spree. What weapons do they want?

This comes, among other things, against the background of tension with the Securities Authority on the way to issue Israel Aerospace Industries, and this in view of the disclosure obligations to investors in the face of the possibility of maintaining confidentiality for security reasons. Among other things, the members of the delegation are going to examine how to deal with classified issues in Nasdaq from the point of view that this may be much easier than in Israel. The IAI and Rafale IPO has been on the table for years, but the procedure in relation to the TEA is actually progressing.

Will Rafael also be issued?

TAA is considered more ripe for issuance, being a company with marketable bonds that publishes financial statements. The Companies Authority assumed in the past that it would be possible to issue at a value of NIS 70-100 billion after peak years in its activity. IAA operates through four business divisions and its sales turnover reached its peak in 2025 with a turnover of 7.4 billion dollars, a gross profit of 1.4 billion dollars and a net profit of 712 million dollars. It employs approximately 15,000 direct employees and its main customer is the Ministry of Defense.

A less mature offering is Rafael’s, but it is also being tried to be accelerated by the Authority. At the end of March, the minister responsible for government companies, David Amsalem, addressed the government secretary with a request to convene the ministerial committee on privatization matters, with the aim of determining the outline of the Rafael issuance during the current government’s term. At the same time, the Director of the Companies Authority, Roi Kahlon, presented the route to the Director General of the Ministry of Finance, according to which 30% of the company’s shares will be sold to institutional entities, and later an offering will be made on the Tel Aviv Stock Exchange. According to the plan, two-thirds of the sale proceeds will be invested back into the company. At NIS 21.67 billion, the net profit was NIS 1.35 billion, and the order backlog swelled to more than NIS 74 billion.