State-Run Israel Aerospace Industries Given Green Light for IPO
The sale of shares in state-run Israel Aerospace Industries Ltd. received the official go-ahead from a ministerial committee on privatization, the company said in a filing to the Tel Aviv Stock Exchange.
As much as 49% of the company’s equity is to be offered on the bourse. Proceeds from the offering will be plowed back into research and development programs, acquisitions and investment, according to the filing late Thursday.
In June, a person familiar with the matter said discussions had focused on offering a 25% stake in the company with the goal of raising roughly $1 billion. But no final decisions had been made at the time.
Government officials have long pushed for a stake sale but progress was most recently stalled by the absence of a permanent government for a year and a half, and concerns that a public offering could expose sensitive security information.
The defense contractor, whose business lines include drones, missiles and defense electronics, sold systems worth $4.1 billion last year.
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