Barzani Infrastructure Company Completes $270 Million IPO, Eyes $930 Million Project Pipeline
Translated & summarized from Globes by baba
Y.D. Barzani, an Israeli infrastructure firm, has completed an IPO valuing it at 2.25 billion shekels, raising approximately 1 billion shekels from investors. The company aims to reach 3.5 billion shekels in annual revenues by 2029, fueled by state infrastructure investments. The funds will support operations, acquisitions, and expansion. The IPO comes despite a recent market slowdown.
The story in 6 lines · by baba
- Y.D. Barzani completed an IPO at a 2.25 billion shekel valuation, raising 1 billion shekels.
- The company aims for 3.5 billion shekels in annual revenues by 2029.
- One-third of the IPO funds will be distributed as dividends to shareholders.
- Barzani had to accept over 20% less than its target valuation for the IPO.
- The company expects revenues to reach 1.06 billion shekels by the end of 2026.
- The IPO is expected to boost the company's growth in the infrastructure sector.
Y.D. Barzani, a major Israeli infrastructure and real estate company, has successfully completed its initial public offering (IPO) on the Tel Aviv Stock Exchange, valuing the company at 2.25 billion shekels (approximately $600 million) before capital. The offering, led by underwriter Active, raised about 1 billion shekels ($270 million) from local investors. This move comes despite a recent slowdown in the Tel Aviv stock market. The company's co-owners, brothers Yossi and Dayan Barzani, will each hold 34.6% of the shares, valued at 1.1 billion shekels ($293 million) each.
Approximately one-third of the funds raised will be distributed as dividends to shareholders. The company benefited from increased investor interest in the infrastructure sector, driven by anticipated large-scale state investments in post-war reconstruction and development. However, Barzani had to compromise on its initial valuation, accepting over 20% less than its target.
Dayan Bar, the company's CEO, expressed satisfaction with the IPO, calling it a significant milestone after 35 years in business. He noted that a previous attempt to go public in 2007 was unsuccessful due to external factors and a lack of maturity, but believes the current timing is opportune given the substantial potential and scope of government projects.
Barzani anticipates significant growth, projecting revenues to reach 1.06 billion shekels ($283 million) by the end of 2026, a 72% increase from the previous year, with net profit expected to hit 113 million shekels ($30 million). The company has set an ambitious goal of achieving annual revenues of 3.5 billion shekels ($930 million) by the end of 2029, alongside synergistic ventures.
The raised capital will primarily fund the company's ongoing operations, strategic acquisitions of quarries and complementary businesses, and expansion of its infrastructure activities. The company is involved in road construction, bridge and interchange building, earthworks, railway construction, underground utilities, and tunnels. In addition to its infrastructure arm, the Barzani group maintains a private real estate division focused on residential development and income-generating properties.
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
