Stock market showdown: who wins the IPO war for Israel’s defense giants?

A major Israeli business group is urging the government to list its state-owned defense companies, including Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems, on the Tel Aviv Stock Exchange rather than on U.S. markets. The Association of Publicly Traded Companies opposes reports that the government is considering initial public offerings (IPOs) on the Nasdaq, arguing these firms are strategic national assets whose growth should benefit Israeli investors. The proposed offerings could value the companies at tens of billions of dollars, selling up to 30% of shares.

"These are strategic assets of the State of Israel and an integral part of its defense, technological and industrial strength," wrote Ilan Flato, CEO of the association.

Flato emphasized that a domestic listing would allow Israeli citizens to share in the financial success of companies built with public investment, especially given record global demand for Israeli defense technology. The debate also involves avoiding some of Israel's stricter public disclosure requirements for classified defense programs by listing in the U.S.