Nasdaq Can Value IAI and Rafael. It Must Not Price Israel’s Freedom of Action

Shay Gal, former IAI Vice President, argues against listing Israel Aerospace Industries (IAI) and Rafael on Nasdaq, asserting that while American capital can finance Israeli power, it must not control it. He emphasizes that such a move would place these national power instruments under an American legal and capital regime, potentially compromising Israel's freedom of action. Gal proposes protecting irreplaceable capabilities through enforceable state rights or removing them from the listed entity, suggesting IAI list first in Tel Aviv and reserve Nasdaq for civilian businesses or US subsidiaries.

• The article highlights that despite IAI's $32.8 billion order backlog and Rafael's NIS 74.4 billion backlog, an IPO is not a distress measure but a window to unlock value.
• It warns that even with significant state ownership, these companies would be subject to US securities law, investor litigation, and market pressure, potentially revealing sensitive operational information through the "mosaic effect" of disclosures.
• Gal states, "A capability that cannot be rebuilt is not an ordinary business asset. Losing it means losing freedom of action."
• The article notes that US export controls already apply where American technology is involved, and a Nasdaq listing would add a corporate filter, making every customer and product a question of disclosure and liability.