Tel Aviv IPO Market Slumps as Metalikon and Others Cancel Listings Amid Falling Valuations
The recent deterioration in the Tel Aviv stock market has led to the cancellation of multiple IPOs, including Metalikon, a complex components manufacturer controlled by Shmuel Topaz. Metalikon, which produces assemblies for defense and civilian industries, had planned to raise 150 million shekels at a pre-money valuation of 550 million shekels. However, institutional investors valued the company at only about 350 million shekels and requested proof of value enhancement following Metalikon's November acquisition of Koor Industries. This cancellation follows similar withdrawals by Orda Print and Aviv Real Estate Group, both unable to meet institutional valuation expectations.
Two companies remain in the IPO pipeline: the real estate developer Avisror, expected to proceed soon but at a lower valuation than initially targeted (2.6 billion shekels), and the restaurant chain Kiso, which submitted a prospectus about six weeks ago aiming for a 400 million shekel valuation but is still evaluating its options amid lower institutional offers.
The IPO market cooling is attributed to declining share prices on the Tel Aviv Stock Exchange after a busy May with 14 IPO prospectuses filed. Market sources note that institutional investors demand discounts proportional to recent market drops, forcing companies to reassess their valuations.
Metalikon’s frozen IPO would have unlocked significant value for its owner, the Mountain Lion Holdings investment fund, co-owned by Shmuel Topaz (chairman) and Lior Hami (vice chairman). The fund acquired Metalikon’s operations from the Wertheimer family’s Plassal for 65 million shekels in early 2023 and has since focused the company on defense, which now accounts for 78% of revenues. Metalikon also completed a controlling acquisition of Koor Metal (91%) by late 2025 for 185 million shekels.
In contrast, the Jerusalem-based pharmaceutical company Rafa, controlled by the FIMI fund led by Ishay Davidi, successfully completed an IPO earlier this week despite a 30% valuation cut, raising 600 million shekels at a 1.65 billion shekel valuation. FIMI has also recently taken Glam, a dietary supplements company, public. Rafa, founded in 1937, develops and markets over 100 original and generic drugs and ended 2025 with revenues of 418 million shekels and net profit of about 100 million shekels.
The ongoing market adjustments highlight the challenges Israeli companies face in balancing institutional investor expectations with market realities amid volatile conditions.
