Defense companies soar, real estate firms struggle: 9 out of 20 new stocks trade below IPO price
Since the beginning of the year, 20 companies have raised 7.7 billion shekels through IPOs. Despite the success of the defense sector, nine out of 19 stocks currently trade below their IPO price amid market caution.
Since the beginning of the year, 20 companies have completed an initial public offering (IPO) on the stock exchange, raising a total of 7.7 billion shekels. This represents a significant boom compared to the entire year of 2025, when 5.7 billion shekels were raised in 21 offerings. However, for investors, the picture is much less rosy: nine out of the 19 stocks that have already begun trading are currently trading below their IPO price.
The performance gap reflects shifting investor preferences since the outbreak of the war with Iran and growing market caution regarding real estate companies and sectors that do not benefit from a defense tailwind. An analysis shows that despite most issuers being relatively mature and established, investors are not necessarily satisfied; only seven companies have yielded a return higher than the flagship TA-125 index since the start of the year. Meanwhile, five stocks have yielded double-digit negative returns (ranging from -14.8% to -25.7%), while six have risen between 21.7% and 52%.
Defense companies lead
The top performers among the 20 issuers are defense companies DSIT and Smart Shooter, which have risen by 52% and 50.5% respectively since March, alongside the infrastructure and construction firm Minrav (+38.7%). Market sources attribute the success of DSIT and Smart Shooter to the timing of their offerings during a period of high enthusiasm for the defense sector and their relatively modest valuation multiples at the time of the IPO. In contrast, larger defense players such as Elbit, Next Vision, and Arit have seen their stock prices decline, mirroring a 29.5% drop in the TA-Defense index.
The disappointing ones so far
Lagging at the bottom of the table is Prodelym, which has lost 25.7% of its value since February, followed by residential real estate firms Moteg Ironi (-21.8%) and the Gabay Group (-18%). The decline in Prodelym is attributed to slowing growth in its core juice solutions business. As for real estate developers, experts point to a broader market slowdown, citing difficulties in apartment sales and concerns over the high-tech crisis and its impact on job security.
