Tnuva Considers Major IPO at $13 Billion Valuation

Israeli food giant Tnuva is seriously reconsidering a stock market debut, preparing a new prospectus for a potential listing on the Tel Aviv Stock Exchange in the second half of 2027. This marks a shift from April, when the company had decided to freeze such plans to focus on a significant investment program. The prospectus preparation is being led by the Meitar law firm, and Tnuva is expected to meet with leading underwriters soon. Although the board has not yet made a final decision, management has begun preparations in coordination with shareholders. The company aims for a valuation of approximately 13 billion shekels, up from a previous target of 10 billion shekels considered for a 2025 offering. Tnuva is currently owned by China's Bright Food Group, holding 76% of its shares, and the kibbutz purchasing organizations, which own the remaining 24%. Some shareholders may offer part of their holdings in the IPO, a point that has caused past disagreements. Recently, Tnuva announced its entry into the dietary supplement market with a new brand, HOLIS, featuring 11 products across nine categories. This is not the first time Tnuva has prepared for an IPO; a similar process began in early 2025 with a target valuation over 10 billion shekels. However, in April 2026, the process was halted due to business environment changes and a planned dairy market reform, with the company opting to invest about 600 million shekels in projects like a new logistics center and factory relocations. If the current plan proceeds, it would be one of the most significant IPOs in the local market. Tnuva, founded in 1926 as a cooperative, became a monopoly in the fresh milk market in 1988. After decades of cooperative ownership, Apex Investments acquired a controlling stake in 2008, and Bright Food Group completed its acquisition in 2015 for 8.6 billion shekels.