ByTOBIAS HOLCMAN
Updated:

Israeli companies are on track to register a record year in the public transaction market, with approximately 30 new Initial Public Offerings (IPOs) expected by the end of 2026 and some $4.1 billion raised in the first half of the year, the Transactions Report by Grant Thornton Israel, published on Tuesday, revealed.

In total, 325 deals were made between public and private offerings, totaling $32 billion in half a year, making 2026 the third-best year in the last decade, behind 2021 and 2022.

"The first half of 2026 reflects the maturity of the Israeli transaction market. Despite a complex macroeconomic and security environment, the market continues to show strong activity, significant transactions, and high confidence from international investors, primarily American investors," said Shlomi Bartov, CEO of Grant Thornton Israel.

Additionally, the report revealed that technology still dominates the market, with 66% of companies that made deals in the last year being from this sector.

It also showed a strong presence of AI-centered companies, which are those that have AI development as a core attribute of their business model, with one-third of the deals being made around them.

Number of & volume of IPOs in Israel.
Number of & volume of IPOs in Israel. (credit: Screenshot/Grant Thornton Israel)

Tel Aviv Stock Exchange on the rise after Iran war

Another key detail of the report shows that the Tel Aviv Stock Exchange reported a record year, with a 38% rise in the last six months.

Some analysts point out that this was a product of the Iran war, of investors diversifying into other markets that do not depend on oil imports, and of reliance on the defense sector due to the ongoing conflict.

The report also mentions these, explaining that after the ceasefire was declared, the TASE saw a slight downward trend after several weeks of growth.

"Israeli companies are coming to the market more mature, with more established business models and the ability to generate larger deals," said Bartov.

The report also noted that current trends in companies going public differ from those of other years, with most companies pursuing public offerings at multi-billion-dollar valuations.