Kisu Restaurant Chain Opts for Private Investment Over Stock Exchange Listing

The Asian restaurant chain Kisu has decided against a public offering on the Tel Aviv Stock Exchange, opting instead for an investment deal with the private equity fund Green Lantern. The agreement, outlined in a memorandum of understanding, involves Green Lantern acquiring between 30% and 35% of Kisu's shares from its founders, Rotem Tahhan and Noam Gabai. The valuation is set between NIS 350 million and NIS 370 million, with the final price contingent on Kisu's 2026 financial results, based on an Enterprise Value to EBITDA multiple of approximately 6. This valuation is significantly lower than the multiple of 12 sought in Kisu's initial prospectus.

Kisu's previous attempt to go public in the summer faced challenges, with institutional investors valuing the company around NIS 300 million, considerably less than the founders' target of over NIS 400 million. The company also struggled to secure a cornerstone investor, leading to the halt of the IPO. The current deal with Green Lantern falls between these previous valuations, offering founders Tahhan and Gabai an estimated NIS 105 million to NIS 130 million for their stakes, while they would retain approximately 30% of the company.

Unlike the planned IPO, which would have injected capital into the company for expansion, Green Lantern's investment involves purchasing existing shares from the founders. This means the funds will not go into Kisu's corporate coffers, potentially impacting plans for a new restaurant in Ramat HaSharon and an expansion in Kiryat Ono. The company will likely need to rely on operating cash flow or alternative financing for these projects, unless the final agreement includes a capital injection.

Kisu, which has been operating for two decades and manages eight restaurants across central Israel, reported NIS 307 million in revenue for 2025, with 41% derived from delivery services. The company's CEO, Adi Englander, also holds a minority stake. The current deal represents a near doubling of Kisu's valuation from a private investment round last year, which valued the company at NIS 180 million.

Green Lantern, managed by Richie Hunter, Daniel Ben Ra'i, and Yosef Eliash, has prior experience with Kisu, having nearly acquired a significant stake in 2023 at a lower valuation. The fund specializes in mid-sized food and consumer companies, with existing investments including Tzfgan, Feldman Ice Cream, and Marina Mushrooms. The memorandum of understanding is not a binding agreement, and either party can withdraw before the final contract is signed.