After IAI and Rafael, secretive missile engine maker Tomer moves toward an IPO
The company behind propulsion systems for Arrow missiles and satellite launchers is preparing for a bond offering as it takes its first steps toward the capital markets.
The government-owned defense company Tomer is preparing to list its shares on the stock exchange within approximately two years. As a first step, the company is working to issue bonds on the Tel Aviv Stock Exchange and become a publicly reporting company, a process it has been pursuing for more than a year.
Tomer, a government defense company established in 2015 following the split of IMI Systems, specializes in the development and production of rocket propulsion systems. The company manufactures engines for Arrow missile interceptors, artillery rockets, satellite launch vehicles and other defense systems.
The intention to transform Tomer into a public company was revealed on Wednesday by Roi Kahlon, director of the Government Companies Authority, at the annual government companies conference held at the Tel Aviv Stock Exchange.
The move reflects the ambitions of Tomer’s management, led by CEO Dotan Gabay, who took office in February, and Chairman Roni Moreno. However, the company has faced challenges in preparing for a bond issuance and becoming a reporting corporation, mainly due to the difficulty of publicly disclosing certain financial and operational information that may be classified for national security reasons.
As a result, the preparation and submission of financial statements to the Israel Securities Authority, a requirement for becoming a publicly traded company, has been delayed.
Tomer’s rocket propulsion activities were carried out for decades within Israel Military Industries (IMI). When IMI was privatized in 2018 and sold to Elbit Systems, the Ministry of Defense excluded the rocket propulsion division from the transaction due to the sensitivity and classified nature of its operations, and transferred it to the newly created Tomer.
The company currently employs approximately 900 people and recorded revenue of about NIS 550 million in 2024. At the end of 2025, Tomer paid the state a dividend equal to 50% of its profits for the first time, amounting to approximately NIS 18 million.
Tomer is not the only government-owned defense company preparing for a possible IPO. Over the past year, planned listings of Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems have attracted significant market attention due to their expected valuations.
According to market estimates, IAI could be listed at a valuation exceeding NIS 100 billion, while Rafael could reach a valuation of approximately NIS 60 billion. Both companies are expected to consider listings on the Tel Aviv Stock Exchange and potentially the New York Stock Exchange.
