After three years in which there were almost no flotations on the Tel Aviv Stock Exchange, things have changed recently, perhaps because of the revival of the stock market in the past year. So far this year, twelve companies have made IPOs, double the number in the previous two years put together. The trend is expected to continue, partly because of the strong performance of the newly listed stocks in 2025. “Globes” finds that the return on the stocks floated since the beginning of the year – half of them of real estate companies – averages 20% since their flotation dates.
In the past two weeks, three real estate companies have become listed for trading, and have already seen their stocks rising strongly. Delek Israel Properties (TASE: DLPR), for example, controlled by Lahav L.R. Real Estate (TASE: LAHV) and Uri Mantzur, has jumped by 17% in the two sessions since it was floated at the beginning of the week to a market cap of nearly NIS 1 billion, while Ampa Yuvalim (TASE: AMPV) and Megido (TASE: MGDO) have risen by 11% and 13% respectively.
So far, the outstanding IPO this year is that of defense technology company RP Optical Lab (TASE: RPOL), controlled by Avi Ortal’s private equity firm Manor Evergreen. Its share price has soared by about 90% since its IPO in late May, giving it a current market cap of nearly NIS 1.3 billion. The company, which produces optical and electro-optical equipment for the defense market, has benefitted from the surge in the defense sector in the past few months. Other stocks that have done particularly well are those of food company Baladi (TASE: BLDI), which has risen 75% since January, and Elad Software (TASE: ELAD), up 46% since February.
Some stocks have however lost ground. Residential construction company Yesodot Eitanim (TASE: YESD), for example, has seen its share price drop 36% since its flotation at the start of the year, despite the general rise in real estate development stocks.
Urban renewal company City People (TASE: CPPL), controlled by Yitzchak Mirilashvili, has given a negative return of 12% since its flotation at the end of last month, while hotels company Pie Siam (TASE: PIES) has fallen 7% since it was floated at the beginning of the year.
Underwriting industry sources say that the IPOs expected during the rest of the year will also be mainly in the flourishing real estate sector.
Published by Globes, Israel business news – en.globes.co.il – on July 22, 2025.
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