Israel’s two giant state-run defense companies may go public, but there are hurdles

Israel's two major state-owned defense companies, Rafael and Israel Aerospace Industries (IAI), are reportedly considering initial public offerings (IPOs) to capitalize on the booming global defense market. While the opportunity is seen as favorable, significant hurdles remain, including how the Israeli government will handle concerns over state secrets, union interests, and the terms of the offering. Experts note that while IAI appears more prepared for an IPO, both companies face complexities due to their state ownership, and the process has been discussed for decades, with recent market conditions and government financial needs potentially pushing the plans forward.