By Steven Scheer
JERUSALEM (Reuters) – State-owned Israel Aerospace Industries is ready for an initial public offering in Tel Aviv but is awaiting government approval, IAI chief executive Boaz Levy said on Sunday.
In November 2020, a ministerial privatization committee had approved a plan under which Israel could sell up to 49% of IAI, the country's largest defense company, on the Tel Aviv Stock Exchange, raising billions of shekels. .
“We are moving toward an initial public offering,” Levy said at an investor conference at the TASE. “Last year, our business results continued IAI's growth trend. We are currently experiencing phenomenal performance.”
He said that as per the government decision that has already been approved, there will be an initial public offering of a minority stake in IAI as soon as the finance and defense ministries “decide it is time to do it.”
Those ministries declined to comment.
Israeli media have reported that the need to reach an understanding with the IAI union and the weakness of the stock market over the past two years had put the IPO on hold.
IAI produces civil and defense products, including aircraft, air and missile defense, unmanned aerial systems (UAS), ground robotics, precision-guided weapons, munitions, satellites and systems for space activities.
Through the first nine months of 2024, IAI posted a record profit of $416 million, up 74% on the year.
Sales rose 13% to $4.4 billion amid rising military conflicts on multiple fronts in the country, while IAI's order book grew by more than $7 billion over the past year to $25 billion. dollars at the end of September.
It has bonds worth 156 million shekels ($43 million) traded on the TASE.
In June, the IAI paid a dividend of $155 million to the government of Israel.
(1 dollar = 3.5995 shekels)
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