Infrastructure Giant J.D. Barazani Files Prospectus for NIS 1 Billion Tel Aviv IPO
Israeli infrastructure firm J.D. Barazani has filed a prospectus for a Tel Aviv IPO aiming to raise NIS 1 billion at a valuation of up to NIS 3 billion. The company reported strong financial growth, backed by an extensive project backlog.
The Israeli infrastructure giant J.D. Barazani is moving closer to an initial public offering (IPO) on the Tel Aviv Stock Exchange, having submitted a prospectus for a valuation ranging between NIS 2.8 billion and NIS 3 billion, pre-money. Led by the underwriting firm Active, headed by Omri Levi, the private infrastructure leader plans to raise approximately NIS 1 billion from local investors. This comes amid surging investor interest in the infrastructure sector, driven by anticipated state investments in post-war reconstruction and development.
All IPO proceeds will flow directly into the company's treasury to fund ongoing operations and strategic plans, which include establishing raw material production plants, strategic acquisitions of quarries and complementary firms, and expanding infrastructure activities. Additionally, one-third of the proceeds is slated for distribution as a dividend to shareholders following the offering's completion.
According to the prospectus, Barazani concluded the first half of the year with revenues of approximately NIS 402 million, representing a 43.5% increase compared to the same period last year, fueled largely by higher execution volumes in active projects. Net profit surged by 23% to reach NIS 46.3 million. Looking ahead, the company projects full-year revenues of about NIS 1.06 billion, a 72% jump, and a net profit of approximately NIS 113 million, marking a 42% growth. The group also set a target of reaching annual revenues of NIS 3.5 billion by the end of 2029.
Projects and Future Pipeline
Barazani currently has 48 projects under execution, including 13 launched in 2026, bringing the group's future revenue backlog from projects to approximately NIS 1.96 billion. Key ventures include the northern section of the Highway 2 fast lanes project between Netanya and the Wingate Institute, yielding around NIS 474 million, and the expansion of Route 60 for the Moriah Jerusalem Development Corporation, generating about NIS 305 million. Furthermore, the group is advancing the HaRama neighborhood project in Katzrin alongside Avner Derech, expected to yield NIS 2.2 billion and a gross profit of NIS 606 million.
Founded in 1991 and controlled equally by brothers Yossi Barazani and Dayan Bar, J.D. Barazani specializes in road paving, bridge construction, earthworks, railways, and underground infrastructure. Following the IPO, the co-CEOs plan to increase their employment scope to 70%, with their annual salary rising from approximately NIS 2.5 million to NIS 4.1 million each. Meanwhile, the group's real estate development activities will remain private due to current market conditions.
