Avissaror Prepares Stock Offering at Reduced Valuation of 2.2 Billion Shekels

Avissaror, an Israeli real estate company, is preparing a stock offering at a valuation lower than initially planned, according to its recent prospectus. Originally, the company aimed to raise 660 million shekels at a valuation of 2.6 billion shekels. However, the valuation has been reduced to 2.2 billion shekels, a 15.4% decrease from the original figure, with expected proceeds of approximately 617 million shekels, 6.5% below the initial target.

Founded in 1978 by the late Moshe Avissaror, who chaired the Beersheba and Negev Contractors Association for about 20 years, the company remains family-controlled. Eli Avissaror, Moshe's son, serves as CEO and chairman of the board since 2016 and is acting president of the Contractors Association of Israel. His sons, Yitzhak and Yoram Avissaror, joined the company in the 1990s and hold senior management roles. Another family member, Mordechai Avissaror, is also a controlling shareholder. The family currently owns all company shares.

The company plans to allocate stock options to 18 beneficiaries, including 16 employees and five family members, representing 0.74% of issued capital, with an estimated value of 6.5 million shekels. These options will vest over five to six years.

Avissaror began operations in southern Israel, mainly Beersheba, and now develops residential and income-generating real estate nationwide. It acts as a registered contractor for most projects and has recently acquired land in high-demand central locations such as Tel Aviv's Sde Dov area, Ramat Hasharon, Herzliya, Petah Tikva, and Bnei Brak. The company is also engaged in significant urban renewal and evacuation-reconstruction projects in Jerusalem.

Currently, Avissaror holds 7,729 residential units at various planning and construction stages, including 1,555 under construction. Of these, 1,211 units under construction remain unsold, alongside about 33 unsold units in completed projects located in Bnei Brak, Be'er Ya'akov, Ashkelon, and Beersheba.

Key projects include the Sde Dov development in Tel Aviv, won in a 2021 tender, featuring 406 apartments, commercial spaces, and a public building. Construction began in July 2024, with completion expected by 2030. By the end of 2025, 125 apartments were sold, including 13 to family members. Another major project is in Neve Gan North, Ramat Hasharon, with 104 apartments in two buildings; 102 were sold by the end of 2025, though prices per square meter dropped 6.8% from 44,000 to 41,000 shekels. A significant evacuation-reconstruction project on Costa Rica Street in Jerusalem also saw six apartments sold to family members.

The prospectus also addressed contractor loans to buyers, which have been reduced following Bank of Israel guidelines. In 2025, Avissaror provided loans totaling about 81 million shekels to 51 buyers. The company's interest expenses are expected to decline by 28% to approximately 9 million shekels in 2025, down from around 12.5 million shekels in 2023-2024.

Like other real estate firms, Avissaror anticipates a sharp revenue decline in 2025 to 362 million shekels from about 630 million in previous years. Net profit is projected to fall from 140 million shekels in 2024 to 44 million shekels in 2025.