Arrow maker IAI nears $30 billion IPO as government backs CEO for Chairman role
Boaz Levy’s expected appointment could break 18-month impasse holding up flotation.
An end may be in sight to the prolonged governance crisis at Israel Aerospace Industries (IAI). Defense Minister Israel Katz and Minister in charge of Government Companies David Amsalem are now seeking to appoint current CEO Boaz Levy as chairman of the state-owned defense company, after more than a year and a half in which the position has remained vacant amid political disputes.
Levy has served as CEO since early 2022, although his path to the role was itself delayed. The IAI board selected him in late 2020 to replace Maj. Gen. (res.) Nimrod Sheffer, but then-Defense Minister Benny Gantz postponed approval of the appointment, leaving Levy to serve as acting CEO for over a year before his position was formally confirmed.
The latest move by Katz and Amsalem is intended to resolve the leadership deadlock and pave the way for a long-planned initial public offering. The state is seeking to float approximately 30% of IAI on the Tel Aviv Stock Exchange at a valuation of 80-100 billion shekels. A parallel offering of rival defense company Rafael is also under consideration, though it is expected to take place outside the exchange.
If Levy is appointed chairman, IAI will need to name a new CEO. According to senior figures in the defense industry, the successor is likely to be selected from within the company’s ranks.
Over the past 18 months, Amsalem has repeatedly attempted to appoint former Israeli ambassador to the United Nations Gilad Erdan as chairman. Erdan was even added to the company’s board in preparation for the role, but the move was ultimately blocked by Katz. A separate attempt to appoint Prof. Gabi Seroussi, a former IAI director, also failed.
Levy is a longtime IAI veteran, having joined the company in the late 1980s as an engineer in its Integrated Combat Systems division. He went on to hold a series of senior roles, including leadership positions in the development of the Arrow missile system for ballistic missile interception. In 2013, he was appointed Executive Vice President and head of IAI’s Missile and Space Systems division.
During his tenure as CEO, IAI has significantly expanded its global operations and sales, driven in part by rising global defense demand following the Russia-Ukraine war and ongoing conflicts in the Middle East.
The company has reported record financial performance in recent years. In 2025, IAI posted sales of $7.4 billion, with net profit estimated at $712 million. Its order backlog surpassed $30 billion for the first time.
Until recently, former minister Silvan Shalom had been the preferred candidate of Katz and Amsalem for the chairman role. However, he withdrew his candidacy amid public criticism linked to past allegations of sexual misconduct during his time in public office.
