Israel’s IPO Boom

Israel is in the midst of an IPO boom just like the United States, particularly for technology companies. The biggest offerings still prefer a U.S. listing, but the Tel-Aviv Stock Exchange (TASE) is becoming increasingly attractive as well. Domestic capital is piling up in Israel due to the country’s high savings rate and robust pension system. As a result, the institutional asset management industry in Israel has expanded its scope and sophistication over the years, allocating more capital to the stock market. 

According to a recent article in the Times of Israel, “As of June 17, 63 companies, including 44 tech firms, were newly listed on the TASE this year, raising a total of NIS 7.8 billion ($2.3 billion)… In all of 2020, only 27 companies held IPOs on the TASE, but it was still the highest figure in 13 years. Nineteen of the 27 firms were from the tech or BioMed sectors, a spurt of activity after 2019 and 2018 saw no tech IPOs at all… There are now at least 511 firms listed on the TASE, up from 455 in 2020 and 442 the year before.”

Even though most of the recent IPOs do not fit within our investment criteria at IIA, the IPO boom is good news for us as well as the Israeli capital markets. More capital increases overall liquidity within the market and inevitably brings new investors into other Israeli stocks as well. We have been actively investing in the Israeli markets for the past 11 years and are very pleased to see this heightened activity and attention.

For more insights on Israeli markets, click here.