Israel Weighs Partial IPOs for Defense Giants IAI and Rafael

Following years of internal debate, the Israeli government is moving closer to taking state-owned defense giants IAI and Rafael public. Reports indicate a plan to float roughly 30% of IAI at a valuation of 80-100 billion shekels ($22-$27 billion). The move aims to improve efficiency, access global capital markets, and capitalize on record-high defense exports, which reached $19 billion in 2025.

IAI CEO Boaz Levy has publicly supported the move, citing its importance for both the company and the state. Challenges remain regarding state secrets and union agreements, but the surging demand for Israeli defense technology has created a favorable market window for the potential offerings.