Egged Initiates IPO Preparations Targeting 2027 Market Debut
Egged chairman Amir Levy announced plans for a 2027 IPO at a Calcalist and Bank Leumi conference, highlighting international expansion, structural reforms, and the urgent need to overhaul Israel's public transportation and fiscal policies.
Egged, Israel's largest public transportation provider, has officially initiated preparations for an Initial Public Offering (IPO), with chairman Amir Levy announcing that a request for structural reorganization has been submitted. Speaking at a national infrastructure conference co-hosted by Calcalist and Bank Leumi, Levy expressed optimism about the offering, targeting 2027 as the timeline.
Core Growth and International Expansion
Marking its 93rd anniversary, the company transitioned from a traditional cooperative to a corporate structure, a move that Levy highlighted as a primary driver of efficiency and growth. Alongside its dominant domestic footprint, Egged operates public transport networks in the Netherlands, Poland, and Lithuania, with active plans for further international expansion. Additionally, the company has consolidated its real estate activities into a dedicated subsidiary focused on entrepreneurial development.
Addressing Israel's Transportation Crisis
Levy sharply criticized the severe lag in Israel's transportation infrastructure compared to communications, electricity, and water sectors. He emphasized that the incoming government must accelerate light rail construction, flood urban areas with dedicated public transit lanes, and massively expand bus services rather than relying on current capacity. Pointing out that 40% to 50% of mileage in advanced nations relies on buses, he noted that the economic cost of inaction dwarfs the investment required.
Fiscal Resilience and Recommendations
Reflecting on the broader economy, Levy noted that Israel entered the war on October 7 with a robust fiscal position, featuring a low debt-to-GDP ratio of 60% and substantial fiscal reserves built up through strict budgetary rules such as the Deficit Law, the Expenditure Rule, and the Numerator Law. These mechanisms enabled the state to absorb an additional 277 billion NIS in wartime expenditures over three years. To safeguard future economic stability, Levy recommended establishing an independent Fiscal Council to oversee budgets and balance professional governance with political priorities, while stressing the urgent need to integrate ultra-Orthodox populations into the workforce and modernize public transit to resolve a 45 billion NIS annual economic drag.
