Israeli Laser Tech Firm Sivan Pushes for $500M IPO Amid Defense Sector Downturn

Sivan Technologies, a Jerusalem-based company specializing in high-power laser systems, is moving forward with plans for an initial public offering (IPO) on the stock exchange, seeking a valuation of up to 1.8 billion shekels (approximately $500 million USD). This move comes at a challenging time for defense sector companies, as the defense stocks index has fallen by about 40% from its peak. Investors are now more cautious, scrutinizing the relationship between revenue, profits, and market valuation.

Founded in 2008 by Dr. Eyal Shakal, Sivan Technologies employs around 200 people and has developed advanced laser systems that combine multiple laser beams into a single, powerful, and precise beam. Initially focused on industrial applications like metal welding, the company has expanded into the defense sector, including integration into air defense systems. Sivan's technology is reportedly part of the "Ohr Eitan" air defense system, developed by Rafael and the Ministry of Defense, with Elbit responsible for the laser source. The "Ohr Eitan" system, operating at approximately 100 kilowatts, offers a potentially lower cost per intercept compared to missile-based systems like Iron Dome.

Sivan reported rapid revenue growth, increasing from approximately 40 million shekels in 2024 to about 100 million shekels in 2025, with expectations of continued growth this year. The company also has a backlog of hundreds of millions of dollars in future orders. However, the full financial details, including profitability and cash flow, will be disclosed in the prospectus. Analysts suggest that even with optimistic projections, the company's requested valuation implies a high price-to-earnings ratio, making a valuation of 1-1.2 billion shekels more reasonable.

Elbit Systems, which invested in Sivan in 2015 and holds about 5% of its shares, is a key partner and supplier for the "Ohr Eitan" system, having received a contract worth around $200 million for the laser source. A dispute between Sivan and Elbit regarding marketing and production rights was recently resolved through mediation, leading to agreements for tens of millions of dollars in future purchases. The company's expansion into the civilian industrial sector, particularly for electric vehicle manufacturing and other processes, could also provide a valuable diversification, reducing reliance on defense budgets.