Israel is preparing plans to privatize state-owned defense giants Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems in the coming months through a public offering on the Tel Aviv Stock Exchange, according to a source familiar with the matter.

The move comes amid a global arms drive and with Israel looking to capitalize on the enhanced reputations of the two firms offering battle-tested technology in the wake of Israel’s two years of war in Gaza and Lebanon and the 12-day-war with Iran.

The advancement of the long-touted privatization plans was first reported by Reuters. The approval of regulatory issues and other union-related hurdles in the coming months is expected to pave the way for initial public offerings (IPOs) by IAI and Rafael.

Israel seeks an initial sale of 25 percent to 30% of each defense contractor on the Tel Aviv Stock Exchange in small tranches, slated for later this year and in 2027, according to a senior Government Companies Authority official cited by Reuters. The government is expected to retain controlling stakes to safeguard national security interests.

Rafael and IAI did not comment when contacted by The Times of Israel.

Rafael, the developer of the first operational high-power laser interception system dubbed “Iron Beam” and the vaunted Iron Dome missile defense system,........

© The Times of Israel