Arrow and Iron Dome makers could head to Wall Street as Israel weighs partial privatization
IAI and Rafael may pursue U.S. listings amid regulatory and fiscal pressures, according to Bloomberg.
Israel is examining a potential shift that could see its two largest state-owned defense companies list in the United States, in a move that would reshape how they are regulated and financed, according to a Bloomberg report.
Under the emerging plan, Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems may pursue either primary or dual listings on U.S. exchanges. Government officials and senior executives from both companies are expected to travel to the United States in mid-July to explore the feasibility of such a step, meeting with investors, underwriters, legal advisers, and regulators.
At the heart of the discussions is a sensitive question: how U.S. disclosure rules would apply to defense firms that handle classified programs. American regulators are viewed as more accommodating than their Israeli counterparts when it comes to transparency requirements tied to national security operations.
The proposed transaction would also include the sale of minority stakes of up to 30% in each company. Israel is aiming to complete the process by the end of the year. Based on current estimates, IAI is valued at roughly 100 billion shekels ($33.7 billion), while Rafael carries an estimated valuation of about 60 billion shekels ($20 billion).
Beyond the parent companies themselves, officials are also expected to evaluate whether subsidiaries of IAI and Rafael could be listed abroad. Each group operates around 40 wholly or partially owned subsidiaries, many of which would not require direct government approval for listing.
IAI and Rafael have both reported record performance in 2025. Combined order backlogs exceed $50 billion, with IAI reporting more than $30 billion and Rafael more than $20 billion. Their international exposure is also significant: foreign contracts account for around 70% of IAI’s business and roughly half of Rafael’s.
