The CEO of Israeli defense giant Rafael expressed strong optimism that the government-owned company could go public before the end of the year, describing the move as essential for its long-term growth. In an interview at last week’s Farnborough Airshow, Yoav Tourgeman said Rafael recorded 30 percent year-over-year growth but needs greater investment flexibility than current government rules allow.
Faster Decision-Making Required for Acquisitions
Tourgeman noted that as a private company, Rafael could complete acquisitions within a week, while government approval processes introduce delays and additional requirements. He stressed that Israel’s security remains the company’s top priority, but greater operational freedom is necessary to stay competitive on the international market.
Coordination With IAI Possible but Uncertain
Competitor Israel Aerospace Industries (IAI) is also advancing toward an IPO. Tourgeman said it would be preferable for both companies to align their timelines, though differences in union dynamics and preparation levels may prevent this. While IAI’s union is more politically active, Rafael’s workforce is more focused on internal matters, potentially allowing faster movement once the government makes a decision. He expects the process to restart shortly after the October 27 elections.
Auto Industry Partnerships to Boost Production
Regarding potential cooperation with car manufacturers, including past talks with Volkswagen on Iron Dome components, Tourgeman confirmed Rafael’s interest in such collaborations. He highlighted that automakers possess valuable expertise for affordable mass production, especially amid the current industry slowdown. Germany, India, the United States, and the United Kingdom were mentioned as possible locations for future partnerships, including in the energetics sector.
Firm Stance Against French Restrictions
Tourgeman was direct about Rafael’s plans to attend next year’s Paris Airshow despite previous restrictions on Israeli exhibitors. He stated the company will not bend to French government measures and is prepared to challenge any interference through the courts, including the Supreme Court, if necessary. The firm intends to showcase its capabilities regardless of political pressure.
