Barzani Infrastructure Company Plans Major IPO, Dividend Payout
Translated & summarized from Globes by baba
Infrastructure company Y.D. Barzani is set for an IPO on the Tel Aviv Stock Exchange, aiming for a NIS 2.8-3 billion valuation and planning to raise NIS 1 billion. The company will distribute one-third of its IPO proceeds as dividends to shareholders. Barzani reported significant revenue and profit growth in the first half of the year and projects substantial increases through 2026 and beyond. The co-CEOs' salaries are expected to nearly double post-IPO.
The story in 5 lines · by baba
- Y.D. Barzani plans an IPO on the Tel Aviv Stock Exchange with a NIS 2.8-3 billion valuation.
- The company will raise NIS 1 billion and distribute one-third of proceeds as dividends.
- Barzani reported a 43.5% revenue increase in the first half of the year.
- The company projects revenues of NIS 1.06 billion in 2026.
- Co-CEOs Yossi and Dain Barzani's salaries are expected to nearly double post-IPO.
Infrastructure firm Y.D. Barzani is preparing for its initial public offering (IPO) on the Tel Aviv Stock Exchange, with an estimated valuation of NIS 2.8-3 billion before capital. The company, equally owned by brothers Yossi Barzani and Dain Bar, plans to raise approximately NIS 1 billion from local investors. This move is driven by growing investor interest in the infrastructure sector, fueled by anticipated state investments in post-war reconstruction and development.
The funds raised will fully support the company's ongoing operations and strategic expansion, including establishing synergistic raw material production facilities, acquiring quarries and complementary businesses, and broadening its infrastructure activities. Additionally, one-third of the proceeds will be distributed as a dividend to shareholders post-IPO.
In the first half of the year, Barzani reported revenues of about NIS 402 million, a 43.5% increase year-over-year, and a net profit of NIS 46.3 million. The company projects finishing 2026 with NIS 1.06 billion in revenue, a 72% increase, and a net profit of NIS 113 million, a 42% rise. By the end of 2029, Barzani aims for annual revenues of NIS 3.5 billion.
The company currently manages 48 projects, with a future revenue backlog of approximately NIS 1.96 billion. Notable projects include a segment of the Highway 2 fast lane project and expansion work on Highway 60. Barzani is also co-developing the Ramat neighborhood in Katzrin, which will include housing, tourism, public, commercial, and employment spaces, with an estimated total revenue of NIS 2.2 billion for the joint venture.
Founded in 1991, Y.D. Barzani is considered Israel's largest private infrastructure company, involved in road construction, bridges, earthworks, railway lines, underground utilities, and tunnels. The co-CEOs, Yossi and Dain Barzani, earned about NIS 2.5 million each last year. Their salaries are expected to nearly double to NIS 4.1 million each next year, coinciding with an increase in their employment scope to 70%. The company's real estate activities, which include initiating residential and urban renewal projects and operating income-generating properties, will remain private.