Rafa and Abisror Lower Valuations in Tel Aviv IPOs Amid Weak Market Conditions
Two major IPOs currently progressing on the Tel Aviv Stock Exchange highlight ongoing weakness in the primary market. Pharmaceutical company Rafa completed its IPO at a valuation significantly lower than initially targeted, while real estate firm Abisror is also expected to lower its valuation to between 1.8 and 2 billion shekels from an original target of about 2.5 billion shekels. Abisror’s offering is expected to close in the coming days. Both IPOs are led by Lider Underwriting, with Rafa’s also involving Barak Capital and Leumi Partners.
Rafa was priced at a valuation of 1.65 billion shekels through a secondary offering, down from an initial goal of over 2 billion shekels. Shares worth 580-600 million shekels were sold, representing about 37% of the company. Investors also received options to purchase additional shares worth up to 360 million shekels within 18 months at a company valuation of 1.8 billion shekels. If fully exercised, public ownership would rise to approximately 53%. Sellers include the private equity fund FIMI and its partners, who held 75% of Rafa prior to the IPO. Other shareholders included Phoenix and Poalim Equity with 9%, and the founding Levin family with 12%. FIMI acquired control of Rafa in 2020 at a valuation of 700 million shekels and has since seen a significant gain, including dividends totaling 310 million shekels. FIMI is selling shares worth 450 million shekels in the IPO and an additional 225 million shekels through options, realizing a profit of about one billion shekels on its holdings.
Rafa expects net profits of 120-130 million shekels in 2026 and 150-170 million shekels in 2027, up from about 100 million shekels in 2025. The company, led by CEO Ido Leshem and chaired by former Proterom CEO Uri Yehudai, employs 257 people. Its 2025 revenues were 418 million shekels. Rafa operates in two main sectors: development, production, and marketing of around 100 medical products in Israel, including treatments for respiratory, digestive, oncology, and women’s health diseases, mainly sold to health funds; and bio-defense products for chemical and nerve agent victims, with major clients including the US military, Canada, and Western European countries. The European operations include the Czech company Excid, acquired for 2.5 million euros with an option to buy full ownership by 2028 for 40 million euros.
Abisror, controlled by the sons of founder Moshe Abisror, including chairman and CEO Eli Abisror, manages projects with about 1,800 apartments and operates in urban renewal and income-generating real estate. The company initially sought to raise approximately 660 million shekels at a valuation of about 2.6 billion shekels but is now negotiating to complete the IPO at a valuation between 1.8 and 2 billion shekels, slightly above its equity of 1.76 billion shekels.
