With loans from 8 family members: Energy company eyes IPO at 700 million shekel valuation
Lanir Group plans to raise 176 million shekels despite reporting losses and an equity deficit. Proceeds from the offering will be used, among other things, to repay loans provided by 22 private individuals.
Despite a cooling IPO market, the stream of companies seeking to list on the Tel Aviv Stock Exchange continues. One such firm is the renewable energy company Lanir Group, which published a prospectus earlier this week ahead of its initial public offering (IPO) at a pre-money valuation of approximately 705 million shekels.
Led by underwriters Orion and Rosario, the company aims to raise approximately 176 million shekels by allocating about 20% of its shares, alongside options. If fully exercised, the conversion of these options is expected to yield an additional 57 million shekels.
Founded in 2018 as Nir Solar, Lanir focuses on the initiation and construction of solar systems. Controlling shareholders include Lavi Carmon (Chairman), Nadav Efrati (CEO), and Rafael Matzliach (Deputy CEO). Upon completion of the deal, the trio will hold approximately 80% of the company's shares, with an estimated value of 704 million shekels.
The company currently has about 520 connected or nearly-connected systems with a total capacity of 75 megawatts. It is also developing storage systems with a volume of 300 megawatt-hours. To date, Lanir has built 1,520 photovoltaic systems with a total capacity of 132 megawatts.
22 lenders
The company ended 2025 with revenues of approximately 60 million shekels, a 7% increase over 2024. However, it reported an annual loss of 18.6 million shekels, compared to a 10 million shekel loss the previous year.
Lanir enters the market with a capital deficit of approximately 3.5 million shekels, stemming largely from a subsidiary's operations. While the company has a negative working capital of 26.6 million shekels, it maintains a positive cash flow from operations of 19.6 million shekels.
Up to 110 million shekels of the offering proceeds will be used to fund the equity component of new projects. An additional 35 million shekels will be allocated for acquiring existing solar portfolios and establishing data center operations, while 20 million shekels will go toward debt repayment.
The prospectus reveals that Lanir received loans from 22 private lenders, with a balance of 9.4 million shekels at an average interest rate of 8%. Over a third of this amount (3.7 million shekels) came from 8 family members of the controlling shareholders. This includes a 370,000 shekel loan from Dvir Carmon, the Chairman's son and the company's operations manager, bearing a 10% annual interest rate.
Additionally, the company was forced to increase the interest rate to 11% on 4 million shekels worth of loans to ensure lenders waived their right to convert debt into equity.
