Afcon Confirms Plans for Renewable Energy Unit IPO

Afcon Holdings has officially confirmed reports that it has submitted a draft prospectus for its renewable energy subsidiary, Afcon Renewable Energy, to be listed on the Tel Aviv Stock Exchange. The company anticipates a valuation of approximately 1 billion shekels for the subsidiary in the upcoming initial public offering.

This valuation includes the stakes held by Migdal and Menora in a joint fund established with Afcon for renewable energy investments in Europe. In exchange for their shares in the fund, Migdal and Menora will receive stock in Afcon Renewable Energy. Afcon will retain controlling interest in the energy company.

The subsidiary's project portfolio encompasses income-generating projects with a total capacity of around 275 megawatts in Israel and Europe. Upcoming projects include a 60-megawatt solar project in Poland, alongside battery storage facilities totaling 211 megawatt-hours in Israel and 500 megawatt-hours in Europe.

Further projects are in advanced development stages, including 40 megawatts of additional capacity, 50 megawatts of wind power projects in Poland, and battery storage facilities with a combined capacity of 1 gigawatt-hour across Israel, Europe, and the United States.

Afcon Holdings is controlled by the Shmeltzer family, with Yisrael Reif serving as the chairman of its board. Earlier this year, negotiations for a merger between Afcon Renewable Energy and SunFlower, which would have valued Afcon Renewable Energy at 190 million shekels, fell through. However, that previous valuation did not account for the fund established with Menora and Migdal.