Afcon Seeks $270 Million IPO for Renewable Energy Unit

Afcon, a company controlled by the Shmeltzer family, has filed a prospectus to list its renewable energy division on the stock exchange, aiming for a valuation of approximately 1 billion shekels (about $270 million). Market sources indicate that achieving this valuation in the current economic climate will be challenging.

The renewable energy unit currently possesses assets totaling 770 megawatts. Earlier this year, in January, Afcon attempted to merge this division with SunFlower, owned by the infrastructure fund Keystone. However, the deal collapsed due to a $50 million discrepancy in their valuations. In that failed transaction, Afcon's renewable energy operations were valued at only 190 million shekels.

To support its current valuation target, Afcon plans to integrate additional activities into the unit slated for the IPO. The parent company, Afcon, chaired by Israel Reif and with a market capitalization of around 3.5 billion shekels, operates in the renewable energy sector both in Israel and internationally.

Additionally, Afcon holds a significant presence in the electric vehicle charging sector, commanding a 28% market share. This segment achieved positive EBITDA of 1.2 million shekels in the second quarter of 2026.