Israel Aerospace Industries Ltd. (IAI) will hold an 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. According to a report in Globes, the company expects to come away with a $4 billion valuation.
It was further reported by Globes that the IPO would be the largest on an Israeli exchange in Israel’s history and will raise the company $1 billion.
Back in March the planned IAI IPO hit a snag and was stalled. The issue at the time had to do with whether or not IAI would be required to make all of the financial disclosures required by law ahead of an IPO. There was concern that the company would not be able to comply with all of the regulations because this information also includes Israel’s sensitive national security and military information.
Israel Aerospace Industries reported a strong 2020 in spite of the Covid financial crisis.
IAI had growth in sales volumes to approx. $4.184 billion compared to approx. $4.108 billion in 2019; an increase of 23% in annual EBITDA to about $397 million compared with approx. $324 million in 2019; gross profit saw a 15% increase in 2020 to approx. $665 million (approx. 16% of sales) compared with approx. $577 million in 2019 (approx. 14% of sales) – an increase of some $88 million.
IAI also reported that its operating income increased by 61% in 2020 to approx. $195 million (approx. 4.7% of sales) compared with approx. $121 million (approx. 2.9% of sales) in 2019. R&D activity increased by 13% (in-house and contracted) in 2020 to approx. $1.036 billion compared to approx. $909 million in 2019. Net income grew by 48% over the past year to approx. $133 million compared with a net income of approx. $90 million in 2019.
The company’s order backlog approximates $12.6 billion, representing 3.13 years of operation. IAI has free cash flows totaling approx. $1.3 billion.
Harel Locker, IAI’s Chairman of the Board, said of the company’s success that,
“IAI has completed a 180-degree transformation in recent years. In 2019 we saw unchartered achievements and 2020 was the highlight point for the company’s business, operations and financial success since its establishment in 1953. IAI’s success is achieved in the midst of the ongoing global COVID-19 crisis. The company’s achievements were made possible owing to managerial focus and business transformation. This success must be credited to the company’s 15,000 employees. IAI is one of Israel’s leading tech companies adding to and demonstrating Israel’s prowess to the whole world with its solid and stable business foundation for many years to come.”
Boaz Levy, IAI’s President & CEO, said, “In 2020, IAI showcased breakthrough innovation and broad capabilities: from advanced technological developments for combatting the COVID-19 virus to the successful launch of Ofek 16 advanced observation satellite, to groundbreaking experiments such as the Arrow weapon system, the LORA missile, the Heron TP, state-of-the-art assault systems developed by the company, the world’s most advanced radar and intelligence systems, to leading the passenger-to-cargo aircraft conversion industry in the aviation world, winning the Israel Defense Prize and more. In addition, it is worth noting IAI’s efforts in fighting the COVID-19 pandemic, in particular orchestrating ventilator production lines. This year we also continued to demonstrate the proven capabilities of the company’s systems worldwide, proving over and over their capabilities on the present and future battlefield. The year 2021 brings with it numerous challenges and innovation opportunities for IAI, based especially on continuing to develop current markets and penetrating new markets. I have no doubt this year IAI will, as it has throughout its many years in operation; continue to lead Israel’s defense industries towards business growth which will benefit Israel’s economy and security.”