Keystone CEO Confirms Fast-Tracked Egged IPO Within Next Year

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Keystone CEO Navot Bar announced plans for Egged’s IPO, expected within a year, alongside strong financial growth and strategic expansions. The company raised its 2030 equity target and highlighted significant value creation since acquiring Egged in 2022. The IPO is projected to value Egged at about 8 billion shekels, reflecting rapid progress beyond preliminary planning stages.

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Keystone raised its 2030 equity target from 4 to 6 billion shekels, with 31.2% return on equity last year.
Egged’s IPO is advancing quickly and expected within the next year, per CEO Navot Bar.
Egged’s valuation is projected at around 8 billion shekels for the upcoming IPO.
Keystone has expanded assets including a data center campus and a 40% stake in HOT Mobile.
Since acquiring Egged in 2022, Keystone has distributed over 1 billion shekels in dividends.
Globes launched a new service transcribing Tel Aviv Stock Exchange company earnings calls for transparency.

Keystone, led by CEO Navot Bar, reported strong second-quarter financial results and outlined ambitious growth plans during a recent investor call. The company raised its equity target for 2030 by 50 percent, from 4 billion to 6 billion shekels, with a 31.2 percent weighted return on equity over the past 12 months and equity growth of 34 percent to approximately 3.1 billion shekels. Bar highlighted Keystone’s focus on next-generation assets, including the IPM data center campus in telecommunications, a 40 percent stake acquisition in HOT Mobile, expansion in energy, and growth of Egged’s operations in Israel and Europe alongside Sunflower’s expansion.

Keystone has demonstrated strong cash flow, distributing 71 million shekels in dividends since the start of the year and projecting an average annual cash flow of about 315 million shekels from income-generating assets between 2026 and 2031. Addressing investor questions about the timing of Egged’s IPO, Bar confirmed that the process is advancing rapidly and is already underway in practical terms. He stated, "It’s no longer just on paper; it’s already in progress," estimating the IPO could occur within the next year, though he cautioned against taking the exact timing as definitive.

Bar described the complexity of preparing a large company like Egged for the stock market, emphasizing the need to organize the company clearly so investors can understand its value beyond being a transportation conglomerate. The anticipated IPO valuation is around 8 billion shekels, reflecting significant value appreciation since Keystone acquired control of Egged in 2022 at a valuation of about 4.8 billion shekels. Since then, Egged has paid over a billion shekels in dividends, and a March deal involving investment house Meitav assigned a valuation of approximately 6 billion shekels.

This investor call transcription is part of Globes’ new service providing full transcripts of Tel Aviv Stock Exchange-listed companies’ earnings calls, aiming to offer transparent insights into company strategies and challenges beyond financial statements.

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