King Store Supermarket Chain Eyes 2027 IPO Amid Market Growth
Israeli supermarket chain King Store, currently operating 30 branches nationwide, is exploring a stock market debut on the Tel Aviv Stock Exchange in the first half of 2027, contingent on its 2026 financial results. CEO Majdi Katani confirmed the company's intention to proceed, with the next steps involving defining the IPO structure and optimal timing.
King Store's trajectory is notable, having grown from its roots within the Arab community in northern Israel to expand across the country, including Beer Sheva, Rosh HaAyin, Ramla, and Tel Aviv. The chain has significantly increased its footprint from 12 branches in 2018 to its current 30, with an estimated annual turnover of approximately NIS 2 billion.
The Phoenix insurance company is already a stakeholder, having acquired a 20% stake in King Store in 2017 for about NIS 40 million through a combination of shares and a loan. This prior investment included discussions of a future IPO, making the current move a revival of a plan conceived nearly a decade ago. The founding family retains the remaining shares.
King Store's potential IPO coincides with another private supermarket chain, Kashet Ta'amim, also considering a public offering. Kashet Ta'amim is reportedly seeking a valuation close to NIS 1 billion, with projected 2025 revenues of NIS 1.5 billion and profits of NIS 50 million. This valuation implies a price-to-earnings ratio around 20, with market focus on sustained growth.
King Store differentiates itself through larger store formats, a diverse supplier base including smaller producers and products from the Arab community, and its ability to attract a Jewish customer base. The company estimated several years ago that about a third of its sales came from Jewish customers, and its expansion into central Israel aims to increase this proportion.
The Israeli stock market already hosts several major food retailers, including Yohananof (NIS 5.2 billion valuation, P/E of 26), Rami Levy (NIS 4.9 billion, P/E of 22), Tiv Ta'am (NIS 1.4 billion, P/E of 16), and Shufersal (NIS 10 billion, P/E of 15). These valuations suggest the market prices in factors beyond just sales turnover, with Yohananof benefiting from growth and profitability, and Tiv Ta'am showing operational improvements. King Store will need to demonstrate its position within this competitive landscape.
Expansion efforts have required significant investment, including recent upgrades like a NIS 10 million renovation of its flagship store in Rosh HaAyin. An IPO could provide the necessary capital for opening more branches, enhancing logistics, and broadening its national presence. If both King Store and Kashet Ta'amim go public in 2027, the supermarket sector will see two new listed companies almost simultaneously. Investor interest will likely focus on store opening rates, sales per square meter, profit margins, and cash flow to determine valuations.
