Pasternak Shoham Files for 300 Million Shekel IPO on Tel Aviv Stock Exchange Amid Market Rally
Pasternak Shoham, an investment management firm specializing in portfolio and mutual fund management, has submitted a prospectus for an initial public offering (IPO) on the Tel Aviv Stock Exchange, valuing the company at approximately 300 million shekels pre-money. The offering, led by IBI Underwriting, aims to raise about 75 million shekels. The company operates mainly in two areas: mutual funds, which generate about 82% of its revenue and manage assets totaling around 6 billion shekels through a hosting model, and investment portfolio management with assets under management of approximately 3.3 billion shekels.
In 2025, Pasternak Shoham reported revenues of about 56 million shekels, marking a 107% increase compared to 2024, driven by growth in assets and fundraising activities. The company also earned 7 million shekels in success fees from hedge funds it manages, which contributed to a 160% rise in net profit to roughly 26.9 million shekels. Hedge funds, while comprising only 5% of managed assets, account for nearly 20% of revenues due to performance-based fees. The firm projects first-half 2026 revenues of 30-31 million shekels and net profits of 15.5-16.5 million shekels, excluding potential additional success fees.
The company was founded in 2010 by Eran Pasternak, chairman and 60% owner, and Shay Shoham, CEO and 40% owner, both former senior executives in the capital markets sector. Proceeds from the IPO are expected to be used to acquire a 50% stake in an insurance agency, expanding into financial services such as pension, provident funds, and life insurance. This move aims to create synergies and diversify revenue streams beyond capital market activities. Additionally, Pasternak Shoham recently invested in the fintech startup Money Flow, which developed a technology platform for mortgage advisors.
If successful, this IPO will mark the first investment house listing on the Tel Aviv Stock Exchange in about a decade, following the 2017 IPO of Mor Investment House, which was valued at 240 million shekels and has since grown significantly, with its stock price rising over 500% to a market cap of nearly 3 billion shekels. Pasternak Shoham hopes to replicate Mor's success amid the current market upswing.
