Afcon Holdings Plans Major IPO for Renewable Energy Arm

Afcon Holdings, a leading Israeli company in systems and technology projects, announced Thursday it has filed a draft prospectus with the Securities Authority for its subsidiary, Afcon Renewable Energy. The filing, based on financial reports for the second quarter of 2026, signals a potential initial public offering (IPO) and listing on the Tel Aviv Stock Exchange.

Afcon Renewable Energy focuses on initiating, establishing, and managing renewable energy projects in Israel, Europe (particularly Poland and Spain), and the United States, including electricity sales. The planned transaction involves Afcon Holdings acquiring the full stakes of limited partners Migdal Group and Menora Group in a joint venture, Afcon Renewable Energy Europe Limited Partnership. In return, these partners will receive shares in Afcon Renewable Energy, which will then be listed on the stock exchange.

Following the IPO, Afcon Holdings will retain controlling interest in Afcon Renewable Energy. The offering is being led by Rosental Capital. Israel Reif, Chairman of Afcon Group, stated that the company has over a decade of experience in renewables, with an international portfolio of approximately 275 megawatts operational and hundreds more in development. He highlighted the significant potential for Afcon Renewable Energy to become a major player in the sector.

Reif expressed confidence that Migdal and Menora becoming shareholders demonstrates significant trust in the company's operations and growth prospects. He thanked both institutions for their partnership and trust, emphasizing Afcon's goal to expand its renewable energy activities. The IPO, if completed, is expected to establish an independent valuation for the renewable energy business, unlocking its inherent value.