Israeli Real Estate Group Plans $800 Million Stock Market IPO
Translated & summarized from Ice by baba
Israeli construction and infrastructure giant Y.D. Barzilai is planning an initial public offering on the Tel Aviv Stock Exchange, aiming to raise between 700 million and 1 billion shekels. The IPO will focus on the company's infrastructure and income-generating assets, valuing the division at 2 to 3 billion shekels. This move is driven by strong demand for national infrastructure projects. The group, founded in 1991, has a significant backlog in infrastructure and is involved in numerous housing and urban renewal projects.
The story in 6 lines · by baba
- Y.D. Barzilai Group plans an IPO on the Tel Aviv Stock Exchange, aiming to raise up to 1 billion shekels.
- The infrastructure and income-generating division will be valued at 2 to 3 billion shekels.
- The IPO is driven by high demand for national infrastructure projects in Israel.
- Residential development and urban renewal activities will be excluded from the IPO.
- The group has a 1.5 billion shekel backlog in infrastructure projects.
- Y.D. Barzilai was founded in 1991 and is a major player in Israeli construction and infrastructure.
The Jerusalem-based construction and infrastructure group Y.D. Barzilai is preparing for a significant strategic move: an initial public offering (IPO) on the Tel Aviv Stock Exchange. Co-owners Dain Bar and Yossi Barzilai are reportedly planning to list the division that will consolidate the group's infrastructure, execution, and income-generating assets. Market estimates suggest the company will be valued between 2 and 3 billion shekels, aiming to raise between 700 million and 1 billion shekels.
This decision comes amid high demand for national infrastructure projects in Israel. The group's residential development and urban renewal activities will remain outside the IPO for now, due to challenging market conditions in the residential real estate sector. In 2024, the group attempted to raise approximately 150 million shekels in bonds, but the plan was canceled due to the complex economic environment.
Y.D. Barzilai, founded in 1991, has become a leading Israeli construction, infrastructure, and entrepreneurship group. The company diversifies across four main branches. Its infrastructure arm undertakes large-scale national projects for entities like Netivei Israel, Israel Railways, and the Ministry of Construction and Housing. Notable projects include Begin Road in the south, the Green Line of the Jerusalem light rail, and interchanges in Jerusalem and Bnei Brak. The current backlog in this sector is estimated at 1.5 billion shekels.
The group also operates advanced asphalt production plants and supplies aggregates for construction projects nationwide. It is currently involved in the execution and sale of over 2,200 housing units, with potential for around 4,000 units, and is advancing approximately 7,900 housing units through urban renewal projects. Additionally, Y.D. Barzilai owns income-generating properties, including rental housing complexes like the 'Lev Mavesheret' project with 224 apartments.
Industry estimates place the group's equity at around 600 million shekels, following an average annual net profit of approximately 53 million shekels in recent years. It remains to be seen if the IPO will proceed and become one of the prominent large-scale offerings in the local capital market.
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