Israel Aerospace Industries (IAI) has once again hit a bump on the road to its initial public offering (IPO). Globes has reported that the company will not be able to hold its IPO before the end of 2021. Plans for the IAI IPO have been underway since back in November of 2020.
Part of the problem for IAI, says Globes, are all of the local regulatory hurdles that IAI must pass through before it can hold the IPO. Also, only the local investors will be allowed to participate in the IPO. Foreign investors and underwriters will be shut out.
In June IAI revealed plans to hold an initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE). The company selected four underwriters to lead the flotation – Discount Capital, Poalim-IBI, Leader Capital Markets, and Barak Capital. IAI had expected to come away with a $4 billion valuation.
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At the time, IAI was expected to hold the largest IPO in Israel’s history – on a domestic exchange – and to come away with $1 billion in cash.
This is now the second time that the company has hit a stumbling block before an IPO. Back in March a 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.
In spite of this, IAI seems to still be moving along with one success after another. Just last month the company signed a $235 million deal with the German Navy to provide it with new radar systems. IAI will upgrade the tech on board Germany’s F124 air defense frigates. The new contract will be carried out with German sensor solutions provider Hensoldt.
In July, IAI signed another deal with the German military. That $220 million contract was for the provision of radar technology. The radar will be used to modernize the German military’s airspace surveillance and build up Ballistic Missile Defense (BMD) capabilities.