The IPO on the Tel Aviv Stock Exchange (TASE) by Israeli car importer Universal Motors (UMI) is expected to take place in the coming few days, sources close to the matter have told “Globes.” The company, which already has bonds traded on the TASE, plans to issue 205 of its shares and raise NIS 675 million, at a company valuation of Nis 3.38 billion, after money – lower than previous estimates. At the same time as the IPO, UMI, which imports Chevrolet, Cadillac and Isuzu vehicles to Israel, will pay a huge dividend to its controlling shareholders – the Eini and Danon families.
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The dividend is expected to be distributed in the fourth quarter and will total half of the IPO proceeds, meaning the owners will receive a dividend of about NIS 270 million. Institutional investors who invest in the IPO will also receive some 10% of their investment back immediately upon the dividend distribution (approximately NIS 67 million). The issue is being led by Leader.
UMI is treading a similar path to that chosen by Rami Levy Real Estate, which is also set for a TASE IPO and plans to distribute of two-thirds of the planned NIS 570 million to be raised as a dividend to the controlling shareholder.
UMI was formed in its current format in 1993 through a merger of the Eini family’s car import business and Kardan Investments. Kardan sold its stake in 2018 to the Danon family, which imports mechanical engineering equipment through Comsco. Since then UMI has tripled its valuation.
UMI is a highly profitable company, even though profits have been eroded in recent years. In 2024 revenue rose 32% to NIS 4.6 billion although net profit remained unchanged at NIS 300 million. In the first half of 2025, net profit fell 16% to NIS 131 million.
Published by Globes, Israel business news – en.globes.co.il – on September 17, 2025.
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