After a series of delays and a compromise on valuation: Kisu will attempt to go public at a valuation of 330 million shekels

After a series of delays, the restaurant chain Kisu is on its way to completing an initial public offering (IPO) on the Tel Aviv Stock Exchange at a pre-money valuation of 330 million shekels. This follows an initial attempt to carry out the move at a higher valuation of 400 million shekels.

As part of the process, led by Discount Underwriting, the company intends to raise approximately 20 million shekels. Additionally, alongside the share issuance, the company is expected to allocate options to investors, exercisable at a price 14% higher than the offering price. This results in an even lower effective valuation for the company, including the options granted without consideration.

Alongside the share issuance, controlling shareholders and founders Rotem Tahan and Noam Gabay will sell shares to the public for 43 million shekels. Even after the IPO, the two will continue to hold shares with a total value of approximately 165 million shekels (47% of the capital). Other shareholders, alongside Tahan and Gabay who serve as co-chairmen, include CEO Adi Engelder and the chain's COO, who each hold approximately 5% of the company's shares, with an estimated value of about 16.5 million shekels.

Founded in 2011, Kisu specializes in Asian cuisine, including Chinese, Thai, Japanese, Indian, and Vietnamese dishes. Today, the chain operates eight restaurants in the Gush Dan, Sharon, and Shfela regions. The company is currently working on establishing three additional locations: the "Night Office" restaurant in a heritage building in central Tel Aviv, and two restaurants in Haifa and Rehovot.

Growth in financial performance

The prospectus reveals that approximately 41% of last year's revenues came from deliveries. The chain's average revenue per diner stood at about 150 shekels, compared to 151 and 156 shekels in 2024 and 2023.

For the first half of the current year, Kisu reported revenues of about 182.5 million shekels, an increase of 26% compared to the same period last year. Operating profit reached 24 million shekels, a growth of 22%. The company notes that operating profit was influenced by growing occupancy rates in new restaurants and the update to the minimum wage.

Looking ahead, the chain expects to finish 2026 with revenues of 370-380 million shekels, reflecting a growth of approximately 22.5% compared to the previous year. The company expects to present an adjusted EBITDA of 47-55 million shekels, an increase of about 22.5% compared to the 2025 figure.