Iron Dome developer Rafael advances IPO at over $20 billion valuation, taps senior advisers
Government-owned defense giant lines up experienced advisers as it moves closer to a potential partial privatization and market debut.
Rafael Advanced Defense Systems is accelerating its path toward an initial public offering, as the government-owned company advances preparations for a potential listing. Calcalist has learned that the company’s board of directors has recently authorized outreach to several senior figures who are expected to advise on the process, including Yankee Quint, former head of the Israel Land Authority; Brig. Gen. (res.) Ram Aminach, a former financial adviser to the IDF Chief of Staff; and Shmuel Hauser, former chairman of the Israel Securities Authority.
Rafael’s IPO has gained momentum with backing from the Government Companies Authority and is expected to reflect a valuation of 60-70 billion shekels. The offering is being structured as a private placement, allowing the company to raise capital without publishing a full public prospectus, in a process considered faster than a traditional stock market listing.
Under the Authority’s proposal, up to 49% of Rafael’s shares would be sold to investors. The move is intended to accelerate the privatization process and potentially align it with the planned IPO of Israel Aerospace Industries, for which the government has already approved a listing. IAI already maintains a presence in capital markets through bond issuances and reporting obligations.
Rafael’s engagement with the selected advisers will require approval from the Ministerial Committee for Privatization Affairs, as well as consent from the Ministry of Defense. The defense establishment has previously set conditions for such offerings, including that they take place in Israel, be targeted primarily at institutional investors, and involve the sale of no more than 30% of shares. The proposal to sell up to 49% of Rafael therefore raises questions about whether those limits will be revised.
The advisers selected by Rafael have prior experience connected to the defense sector and the company’s operations. Aminach, in his previous role advising the Chief of Staff, was closely involved in the financial oversight of defense companies. Quint, who until recently led the Government Companies Authority, has also been involved in policies affecting state-owned firms. The appointments were promoted by Rafael chairman Yuval Steinitz.
Quint has also played a role in major real estate developments linked to Rafael. In 2022, under his leadership at the Israel Land Authority, a framework agreement was approved for the evacuation of the Giva complex in eastern Tel Aviv, a 128-dunam site slated for the construction of approximately 900 housing units and commercial space.
More recently, Quint publicly advocated for the listing of major government defense companies, arguing that firms such as Rafael and IAI should take advantage of current market conditions. He has said that regulatory constraints on state-owned companies limit their ability to compete globally, particularly when compared with Elbit Systems, a publicly traded peer that operates with greater flexibility in international markets.
