Pasternak Shoham Ends Decade-Long TASE Dry Spell With 70 Million NIS IPO

For nearly a decade, no new investment house had listed for trading on the Tel Aviv Stock Exchange (TASE), despite their dominance in the local capital market and a wave of initial public offerings (IPOs) in recent years. This trend ended this week as Pasternak Shoham Investment House completed a 70 million NIS IPO at a post-money valuation of approximately 350 million NIS.

The company is controlled by its two founders: Eran Pasternak, who serves as chairman and holds a 48% stake valued on paper at 167 million NIS, and Shai Shoham, who serves as CEO and holds a 32% stake valued at 112 million NIS. The duo established the investment house in 2010 after working in senior roles in the capital market, including at Tamir Fishman, where they served as VP and investment manager, respectively. Their combined holdings in Pasternak Shoham are now valued at nearly 300 million NIS.

Prominent Backers and Strategic Alliances

Among the notable participants in the IPO was insurance billionaire Itzik Oz, chairman of Phoenix Agencies, who acquired a significant portion of the offered shares. However, contrary to early market estimates, Oz is not expected to become an interested party (holding over 5%) in the investment house. Two other insurance executives also invested in the offering without reaching the interested party threshold.

Allied Holdings, managed in trust by Prof. Itzhak Swary, also participated in the IPO, purchasing a substantial block of shares. Market estimates suggest that the three insurance executives, alongside Allied, acquired the majority of the shares in the offering, which also saw participation from several hedge funds and insurance firms Clal and Hachshara.

Allied's investment comes just a month after it recorded a highly profitable exit from Menora Mivtachim's provident and pension division. In late July, Menora announced it was buying back a 5% stake from Allied for 250 million NIS, leaving Swary's firm with a remaining 5% stake in the rapidly growing division. This transaction valued the Menora subsidiary at approximately 5 billion NIS, nearly double the valuation at which Allied initially invested five years ago.

Debt Issuance Drives Real Estate Profits

While the list of companies joining the TASE through equity offerings continues to grow, several firms—primarily in the real estate sector—are seeking entry into the local market through debt issuance.

One such company is the urban renewal firm Amram & Nidam, jointly controlled by the public real estate company Amram Avraham and businessman Eli Nidam. The company is currently working to raise approximately 75 million NIS through its maiden bond offering.

Although the debt issuance has not yet been finalized, Amram Avraham, controlled by brothers Alon and Yoram Amram (66%), has already benefited significantly. In its second-quarter financial reports, the major construction firm reported a more than sevenfold surge in net profit compared to the same period last year, reaching approximately 153 million NIS. This jump was driven by the fact that, as part of the preparations for Amram & Nidam's debt issuance, the real estate company ceased consolidating its results and began accounting for the holding on an equity basis. This transition prompted an external valuation that priced Amram & Nidam at 328 million NIS, resulting in a one-time accounting profit of 150 million NIS for Amram Avraham.

Amram & Nidam was founded in 2013 and focuses on urban renewal projects in northern Israel. The company currently manages 7 projects totaling 7,539 housing units, with 471 units under construction and 429 in the planning stages. These projects are also expected to include 27,570 square meters of commercial space and 14,960 square meters of office space.

Financial Performance and Growth Plans

Amram & Nidam concluded 2025 with revenues of approximately 169.5 million NIS, a 24% increase compared to 2024, driven by revenue recognition from two active projects in Tirat Carmel. However, its net profit fell by 72% compared to 2024, standing at 2.6 million NIS, primarily due to rising financing and administrative expenses associated with its expanded operations. Most of the bond proceeds are earmarked to repay a portion of a 125 million NIS credit facility provided by an insurance company, with the remainder supporting equity requirements for ongoing projects.

Meanwhile, Pasternak Shoham's entry ends a dry spell for investment houses on the TASE since More Investment House went public in 2017 at a valuation of 240 million NIS. More has since surged by over 590% over the past three years, reaching a market value of 3.25 billion NIS.

Pasternak Shoham operates in two main segments: portfolio management and mutual funds. The mutual fund division, which accounts for 82% of revenues, manages hosted mutual funds valued at approximately 6 billion NIS. Its portfolio management division oversees approximately 3.3 billion NIS in client assets.

The proceeds from the IPO will be used by Pasternak Shoham to acquire a 50% stake in an insurance agency, marking its entry into the long-term savings market (provident funds, study funds, pensions, and life insurance) to create natural hedging and operational synergies.

In 2025, Pasternak Shoham reported revenues of 70.5 million NIS, a 102% increase compared to 2024, driven by asset growth and 7 million NIS in performance fees from its managed hedge funds. Its net profit surged by 160% to approximately 26.9 million NIS.