Israel's Largest Private Infrastructure Firm Plans $270 Million Stock Market Debut
Translated & summarized from Globes by baba
Israel's largest private infrastructure company, Y.D. Barzani, is planning an IPO for its infrastructure arm to raise about 1 billion shekels. The company, controlled by brothers Yossi and Dain Barzani, aims to list the division at a valuation of 2.8-3 billion shekels. This move separates the infrastructure business from its private real estate operations, seeking to attract investors interested in infrastructure. The company expects significant revenue growth, projecting 1.1 billion shekels in 2026.
The story in 6 lines · by baba
- Y.D. Barzani plans to raise approximately 1 billion shekels through an IPO for its infrastructure division.
- The infrastructure arm is valued between 2.8 and 3 billion shekels before the capital raise.
- The company is Israel's largest private infrastructure firm, founded in Jerusalem in 1991.
- The IPO aims to capitalize on investor interest in infrastructure, separating it from the private real estate arm.
- Projected revenues for 2026 are estimated at 1.1 billion shekels, with a net profit of 120 million shekels.
- The company is expected to have a backlog of orders worth approximately 2 billion shekels.
Y.D. Barzani, a major Israeli real estate and infrastructure group controlled by brothers Yossi and Dain Barzani, is preparing to launch an initial public offering (IPO) for its infrastructure arm. The company aims to raise approximately 1 billion shekels (about $270 million) from local investors, valuing the division between 2.8 and 3 billion shekels before capital infusion. The move, spearheaded by underwriting firm Active, managed by Omri Levi, will see the group's established infrastructure business go public.
While Y.D. Barzani also has significant real estate operations, including residential development and income-generating properties, its owners have opted to keep this segment private for now due to current market weakness and low investor interest in real estate companies. This strategic split is intended to capitalize on institutional investors' interest in the infrastructure sector while avoiding the sluggishness in real estate.
This IPO attempt follows a failed attempt two and a half years ago, in mid-2024, to raise about 100 million shekels through a bond issuance that encompassed all group activities. Market conditions at the time prevented that plan from proceeding.
Founded in Jerusalem in 1991, Y.D. Barzani is described as Israel's largest private infrastructure company. Its extensive work includes road paving, bridge and interchange construction, earthworks, railway track building, underground utilities (water, sewage, communication, electricity), and tunnels. The company primarily works with municipal and government entities, having undertaken major projects such as the widening of Shalag Road in Tel Aviv, a bridge over Highway 2 near Netanya, and sections of Route 60 in Jerusalem, including the Begin South Road and the Ein Kerem tunnel.
Financial projections indicate strong growth for the infrastructure division. It is estimated to have closed 2025 with revenues of around 700 million shekels and a net profit of approximately 90 million shekels, a significant increase from previous figures. For 2026, revenues are projected to reach about 1.1 billion shekels, with net profit estimated at 120 million shekels. The company is expected to enter the market with a backlog of orders valued at roughly 2 billion shekels, more than double its backlog from two and a half years prior.
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