Barzani Group Targets 1 Billion Shekel IPO for Infrastructure Arm
Y.D. Barzani Group plans an IPO for its infrastructure arm, aiming to raise 1 billion shekels at a 2.8-3 billion shekel valuation, backed by surging revenues and a strong order backlog.
The Y.D. Barzani Group, controlled by brothers Yossi and Dayan Barzani, is preparing to publish a prospectus for an initial public offering (IPO) of its infrastructure arm, aiming to raise approximately 1 billion shekels from local institutional investors at an estimated pre-money valuation of 2.8 to 3 billion shekels.
Strategic IPO Focus
The IPO process is being led by Active Underwriting, managed by Omri Levi. While the long-standing group also maintains extensive operations in real estate, including residential development, urban renewal, and income-producing properties such as offices and commercial spaces, the controlling owners chose to keep the real estate arm private due to ongoing weakness and low market interest in the property sector.
Financial Growth and Projections
Founded in Jerusalem in 1991, Y.D. Barzani is Israel's largest private infrastructure company. Its operations include road paving, bridge and interchange construction, earthworks, railway construction, underground utilities, and tunneling, with major clients consisting of municipal and government bodies. Notable projects include the expansion of Shlavim Road in Tel Aviv, the construction of a bridge over Highway 2 near Netanya, and the Beersheba maintenance facility for Israel Railways.
"Infrastructure activity is slated for robust growth as the company enters the public market with a substantial order backlog," market analysts note.
Estimates indicate that the infrastructure arm closed 2025 with revenues of approximately 700 million shekels and a net profit of around 90 million shekels. Looking ahead to 2026, revenues are projected to surge to approximately 1.1 billion shekels, with net profit estimated at 120 million shekels and an order backlog exceeding 2 billion shekels.
