Israel is weighing a U.S. initial public offering for state‑owned defense champions Israel Aerospace Industries Ltd. (IAI) and Rafael Advanced Defense Systems Ltd. Officials plan a mid‑July trip to New York and Nasdaq to test primary or dual‑listing options, hoping to sidestep Israel’s tighter disclosure regime. The plan aims at investors for Arrow and Iron Dome exposure, bulk of export sales.

Israel hopes to divest up to 30% of each firm, targeting a finish before year‑end. Bloomberg values IAI at roughly 100 billion shekels ($33.7 billion) and Rafael at 60 billion shekels. Senior defense and finance officials will meet U.S. underwriters, lawyers and regulators to map how American security‑clearance rules could relax reporting on classified projects. The talks consider a dual‑listing on Nasdaq or NYSE.

Record 2025 orders—over $30 billion for IAI and $20 billion for Rafael—show foreign contracts now supply 70% and 50% of their revenues respectively. Privatization could funnel billions of shekels into a budget strained by a 5.3% GDP deficit after the October 2023 Hamas attacks. With elections looming, any final approval must navigate a tight parliamentary timetable. Stake sales remain subject to consent.