Kiso Restaurant Chain Plans IPO at 330 Million Shekel Valuation After Delays and Price Cut
Kiso, an Asian cuisine restaurant chain in Israel, is moving forward with an initial public offering (IPO) on the Tel Aviv Stock Exchange at a valuation of 330 million shekels, down from its initial target of 400 million shekels. The IPO, led by Discount Issuance, aims to raise approximately 20 million shekels. Alongside the share offering, the company will grant investors options to purchase shares at about 14% above the IPO price, effectively lowering the company's valuation when including these options.
Founders Rotem Tahan and Noam Gabay, who serve as co-chairmen, will sell shares worth 43 million shekels but will retain a 47% stake valued at around 165 million shekels after the IPO. Other key shareholders include CEO Adi Engleder and COO, each holding about 5% of the company, valued at roughly 16.5 million shekels each.
Founded in 2011, Kiso operates eight restaurants in the Gush Dan, Sharon, and Shfela regions, specializing in Chinese, Thai, Japanese, Indian, and Vietnamese dishes. The company is currently developing three additional locations, including "Night Office" in a historic building in central Tel Aviv, and two others in Haifa and Rehovot. Delivery sales accounted for about 41% of Kiso's revenue last year.
In 2023, the average revenue per customer was approximately 150 shekels, slightly down from 151 and 156 shekels in 2024 and 2023, respectively. For the first half of the current year, Kiso reported revenues of about 182.5 million shekels, a 26% increase compared to the same period last year, and an operating profit of 24 million shekels, up 22%. The company attributes profit growth to higher occupancy rates at its new restaurant and adjustments to minimum wage.
Looking ahead, Kiso projects 2026 revenues between 370 and 380 million shekels, representing roughly 22.5% growth over the previous year, with an expected adjusted EBITDA of 47 to 55 million shekels, also reflecting a 22.5% increase compared to 2025.
