Barzilai Group Eyes Tel Aviv Stock Exchange IPO at $700M-$850M Valuation
Translated & summarized from Calcalist by baba
The Barzilai Group, a large Israeli real estate and infrastructure firm, is considering an IPO on the Tel Aviv Stock Exchange at a valuation of NIS 2.5-3 billion. Co-CEOs Dain Bar and Yossi Barzilai are gauging investor interest, with a decision expected post-election. The company aims to raise over NIS 800 million. The IPO faces market uncertainty due to upcoming elections and geopolitical concerns, with some investors deeming the valuation high.
The story in 6 lines · by baba
- Barzilai Group is exploring an IPO on the Tel Aviv Stock Exchange at a NIS 2.5-3 billion valuation.
- The company plans to raise over NIS 800 million in the potential public offering.
- Co-CEOs Dain Bar and Yossi Barzilai are meeting with institutional investors to assess the market.
- A decision on the IPO is anticipated after the upcoming Israeli elections.
- Market uncertainty due to elections and geopolitical factors is causing hesitation.
- Some investors believe the proposed valuation is too high given recent real estate downturns.
The Barzilai Group, a major Israeli real estate and infrastructure company, is exploring an initial public offering on the Tel Aviv Stock Exchange with a valuation of NIS 2.5 to 3 billion (approximately $700 to $850 million). Co-CEOs and owners, brothers Dain Bar and Yossi Barzilai, are currently meeting with institutional investors in a "testing the water" phase to decide on the move, with a decision expected after the upcoming elections. The company intends to raise over NIS 800 million ($220 million) in the IPO, led by Active Underwriting, owned by Omri Levy.
Barzilai Group, founded in 1991 by Akram Barzilai, operates in residential construction, execution, infrastructure, and urban renewal. Its flagship project in Tel Aviv is the 27-story Levanda Tower, featuring hotel, office, and residential spaces. The company also has significant urban renewal projects in Jerusalem, including "Talpiot Renewed" with over 1,000 housing units, and "Ma'aglei Yavne" with over 1,200 units in Katamon. Additional projects are underway in Beit Shemesh and Katzrin.
In infrastructure, Barzilai has built bridges, roads, and interchanges, including sections of Highway 2 near Netanya, Begin South in Jerusalem, and the Ramat Shlomo interchange. The company also holds income-producing properties in Mevaseret Zion and the Jordan Valley, among other locations. In urban renewal specifically, Barzilai has over 40 occupied projects, with 7,000 units planned and 5,200 under construction.
The company's hesitation stems from the uncertainty in the real estate market leading up to the elections and the unclear geopolitical situation afterward. Some institutional investors consider the lower end of the valuation, NIS 2.5 billion, to be too high given recent market downturns. However, Barzilai's stability and diversified operations might support a successful fundraising effort, despite the challenging IPO market, which has seen other companies like Kisso restaurant chain and Metlikon Industries cancel their offerings due to low demand.
Mentioned
