Two Small Companies Join Tel Aviv Stock Exchange Amid IPO Market Slowdown

May 2026 marked a record month for initial public offerings (IPOs) in Israel, with 14 companies submitting prospectuses to list on the Tel Aviv Stock Exchange (TASE). Half of these completed their listings early in June, collectively valued at over 18 billion shekels. In the first half of 2026, 17 new companies raised a total of 6.2 billion shekels at a combined valuation near 28 billion shekels, surpassing the full-year 2025 figures when 21 companies raised about 5.8 billion shekels at a 20 billion shekel valuation.

However, since May, the local market has experienced volatility due to progress toward a peace agreement between Iran and the U.S., causing major indices to drop up to 11% in June, the weakest month in two and a half years. This downturn has cooled the IPO market, delaying many companies’ listings as investors reassess market conditions. A senior underwriting official explained that half of the companies that filed in May are currently "on hold" due to the recent market decline and investors’ cautious stance, especially after some IPOs saw share prices fall post-listing.

So far, only one IPO cancellation occurred, by Aviv Real Estate Group, which failed to secure its targeted valuation of 1.5 billion shekels and instead raised debt. Several companies, including real estate developer Avisror, pharmaceutical firm Rafa, printing company Orda, components manufacturer Metalicon, and restaurant chain Kiso, are still evaluating their IPO plans. Energy company Refek Energy also recently filed a prospectus for a potential IPO valued at about 1.28 billion shekels.

Despite the market challenges, two smaller companies are set to join TASE soon with lower valuations and without recorded profits, unlike the larger, more stable firms in the recent IPO wave. Renewable energy company Sola plans to list at a 250 million shekel valuation after raising 55 million shekels, mainly to fund new projects and repay loans. Founded in 2019, Sola operates solar and energy storage projects in Israel and Italy, reporting 7.5 million shekels in revenue for 2025 but a net loss of 3.7 million shekels. Its controlling shareholders include the Peit, Chen, and Mosler families, along with company executives.

The second newcomer, drone company Kando Drones, controlled by Rami Levy, completed its IPO at an 83 million shekel valuation, raising 19 million shekels. Kando reported minimal 2025 revenues of about 7 million shekels but a net loss of nearly 12 million shekels, with negative equity and cash flow concerns, leading auditors to issue a going concern warning. Both companies’ IPOs were largely supported by private investors, with institutional investors notably absent.

A senior market source noted these small IPOs do not reflect broader market trends, as institutional investors focus on larger, more established companies. Optimism remains that market conditions may stabilize soon, potentially reviving appetite for new listings.