Israeli Delegation Departs for U.S. to Promote IPOs of Defense Companies
An official Israeli delegation is expected to depart for the United States soon. The primary goal of the visit is to promote the initial public offering (IPO) process of Israel's two largest defense companies: Israel Aerospace Industries (IAI) and Rafael. This move is considered a very significant step for the Israeli economy and for the future of government-owned companies.
An IPO means that the companies will sell shares to the public and large investors. In this way, the state can raise significant funds, and the companies can use the new resources to develop advanced technologies. IAI and Rafael are world-leading companies in the defense sector and generate great interest among international investors.
However, the visit is taking place during a period of instability in global financial markets. In recent days, sharp declines have been recorded in major stock exchanges, particularly in the shares of technology and artificial intelligence (AI) companies. In the South Korean stock market, for example, declines of about 10% were recorded, and the situation was similar on Wall Street and in Europe.
Experts explain that the declines stem from several reasons. The main reason is "profit-taking"—a situation where investors sell their shares to realize the gains they have made recently. Additionally, there are concerns that technology stock prices were too high relative to their actual value, which caused a rapid decline in their worth.
Despite the turmoil in global markets, there is hope in Israel that the strength of the defense industries will attract investors. Demand for defense products and military technology is at an all-time high worldwide, giving companies like Rafael and IAI an important advantage. The delegation will attempt to convince American investors that this is a good long-term economic opportunity.