Bagira IPO delivers $230 million payday to founding family
The defense simulator maker debuted on the Tel Aviv Stock Exchange at a $1.1 billion valuation, with most of the offering proceeds coming from a secondary share sale by its controlling shareholders, retired Brigadier General Arie Mizrahi and his two sons, Yaron and Sagi.
The wave of IPOs on the Tel Aviv Stock Exchange continues. Defense company Bagira has completed its initial public offering (IPO), becoming the 13th company to list on the TASE since the beginning of the year.
The offering valued Bagira, which develops and operates combat training and battlefield simulation systems, at NIS 3.18 billion ($1.12 billion) before money. While substantial, the valuation fell well short of the company's initial target of NIS 5 billion ($1.75 billion). Nevertheless, the IPO generated a significant cash realization for the controlling shareholders, the Mizrahi family.
Bagira raised a total of NIS 855 million ($300 million) in the offering. However, the majority of the proceeds, NIS 655 million ($230 million), came through a secondary share sale by existing shareholders, while only NIS 200 million ($70 million) was raised for the company itself.
Following the offering, the Mizrahi family will retain a 73% stake in Bagira, while the public, primarily through institutional investors, will hold approximately 24.5% of the company's shares.
Bagira was founded in 2004 by retired Brigadier General Arie Mizrahi, who served as Israel's Chief Artillery Officer, chairman of the Industrial and Construction Association, and Director General of the Ministry of Housing and Construction during the second Rabin government. Prior to the IPO, Arieh Mizrahi held 50% of the company and now owns approximately 36%.
His sons, Yaron and Sagi Mizrahi, currently lead the company. Yaron serves as President and CEO, while Sagi serves as Vice Chairman and CBDO. Each held a 25% stake before the IPO and now owns approximately 18%.
Bagira operates around 50 training facilities, primarily in southern Israel, and employs roughly 400 people who provide training services to Israel Defense Forces units. Its simulation systems use large-scale screens and advanced training environments that allow soldiers to prepare for a variety of combat scenarios, including urban warfare and open-terrain operations. The company also provides mobile training systems that simulate dynamic battlefield conditions.
According to the company, the global military simulation and training market is expected to reach approximately $15 billion in 2026.
Bagira ended 2025 with revenue of NIS 270 million ($95 million) and net profit of NIS 99 million ($35 million). Approximately 58% of its revenue was generated from contracts with Israel's Ministry of Defense.
Bagira's listing reflects the continued revival of Israel's IPO market. It is the 13th company to go public on the TASE this year, putting 2026 on pace to surpass last year's activity. In 2025, the exchange hosted 21 IPOs, a sharp increase from just five in 2024.
The current IPO wave has been characterized by larger, more established companies coming to market. Earlier this week, real estate developer BST completed an IPO at a pre-money valuation of NIS 2.6 billion ($912 million), raising NIS 400 million ($140 million) for the company. Another major real estate group, Tidhar, recently reached an agreement with institutional investors ahead of an IPO at a valuation of NIS 6.5 billion ($2.28 billion).
