On the way to the stock exchange, Avisror reveals: 13 apartments were sold to controlling shareholders in one project
The construction company Avisror is seeking to go public at a valuation of 2.2 billion shekels, about 15% lower than it had aimed for. To attract investors, it is offering free options, as several companies have done before it. The prospectus reveals: profitability in Sde Dov is low, but controlling shareholders are selling apartments to family members.
Despite the difficulties along the way, another company is on its way to the local stock exchange. After compromising on its valuation, the family-owned real estate company Avisror is expected to raise about 617 million shekels as part of an IPO on the Tel Aviv Stock Exchange at a valuation of about 2.2 billion shekels (pre-money).
The offering, led by underwriting firms Leader and Apex, comes after the company initially aimed to raise about 660 million shekels at a valuation of about 2.6 billion shekels in its first prospectus two months ago. However, the local IPO market has cooled, forcing a long list of companies to compromise on valuation or postpone their listing plans.
Avisror chose to reduce the requested valuation by nearly 20%, while offering investors a "sweetener" in the form of free share options.
Why would a company grant free options?
In doing so, Avisror follows the path of several companies in the current wave of offerings that added options to the package, including the pharmaceutical company Rafa, the income-producing real estate company Alamdab, and the drone company Cando Drones. By granting options, companies seek to entice investors, who receive the possibility to purchase additional shares in the future for a higher price. Thus, issuing companies manage to maintain a share price higher than what they would have received had they waived the options.
In the case of Avisror, the options are exercisable at a price 13% higher than the offering price, and their future exercise could flow up to 420 million additional shekels into its cash coffers.
Despite the compromise in valuation, those expected to benefit are the controlling shareholders of Avisror, the four sons of the late founder Moshe Avisror, who will hold shares worth about 2.2 billion shekels after the offering: Eli Avisror (Chairman and CEO) is expected to hold about 31%; directors Yitzhak and Yoram will hold about 20% and 17% respectively; while Mordechai Avisror will hold about 10%.
Sde Dov: selling apartments within the family
Avisror, founded in 1978, is mainly engaged in residential project development, expanding from the southern region to the center of the country. It also manages income-producing real estate assets. The company holds a long list of projects, including almost 1,800 housing units under construction, expected to yield a gross profit of about 1.3 billion shekels. Avisror currently holds about 33 completed but unsold units, expected to yield revenues of 77 million shekels and a gross profit of 21.5 million shekels.
Avisror ended the first quarter with revenues of about 265 million shekels, an 86% increase compared to the previous year, thanks to sales in Bnei Brak and the "Ashira" project in Sde Dov, Tel Aviv.
Out of 127 apartments sold in the project, no less than 13 were sold to members of the Avisror family for 115 million shekels, constituting about 15% of the sales volume in the project so far. The company states that the transactions "were examined in relation to market prices at the time of their signing in accordance with valuations by an external appraiser."
Bottom line, Avisror presented a 75% drop in quarterly net profit, which stood at 15.7 million shekels, mainly due to low gross profitability in the Sde Dov project compared to other projects, explained by an unusual recognition of financing expenses.
Avisror ended 2025 with revenues of about 423.5 million shekels, a 37% decrease. The company recorded a 68% decrease in net profit, which stood at about 44 million shekels.
