Afcon Energy Arm Seeks $270 Million Valuation in IPO

Afcon, controlled by the Shmeltzer family, is preparing to issue a prospectus for an initial public offering of its renewable energy division. The company is targeting a valuation of approximately 1 billion shekels (around $270 million) for this segment, according to sources familiar with the matter. Afcon Renewable Energy currently possesses assets with a capacity of 770 megawatts.

However, market observers suggest that achieving this valuation in the current IPO market will be challenging. Afcon had previously attempted to merge this energy division with SunFlower, a company owned by the infrastructure fund Keystone. This deal fell through in January of this year due to a $50 million discrepancy in their respective valuations, with Afcon Renewable Energy being valued at 190 million shekels within that proposed transaction.

Following the breakdown of negotiations with SunFlower, Afcon indicated its intention to proceed with an IPO for its renewable energy business. The company now plans to include additional activities in the offering to bolster the final valuation. Afcon, whose parent company is currently valued at 3.5 billion shekels, also has operations in electric vehicle charging, holding a 28% market share in this sector. This charging division achieved a positive EBITDA of 1.2 million shekels in the second quarter of 2026.

Israel Reif serves as the chairman of Afcon. The Shmeltzer family are the controlling shareholders.