Delek Properties completes IPO at reduced valuation

Real estate company Delek Israel Properties (TASE: DLPR) has completed its initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE) at a company valuation of NIS 660 million, before money. In the flotation, the company, which is controlled by Lahav L.R. Real Estate (TASE: LAHV) and Uri Mantzur, raised NIS 173 million from institutional investors.

The IPO of Delek Properties, which manages the income producing property of the Delek Israel chain of gas stations and convenience stores, comes after it examined the possibility of listing its shares for trading at the beginning of the year, when it was reportedly aiming for a valuation of over NIS 1 billion. However, as far as is known, the company received a cold shoulder from the institutions that showed a willingness to invest in the company, at a value significantly lower than the company’s equity (about NIS 840 million).

Delek Group sells 70% Delek Israel stake

Lahav and Mantzur acquired control of Delek Israel in 2020 from Yitzhak Tshuva’s Delek Group at a value of NIS 750 million. A few months later, Delek Properties, which holds Delek Israel’s gas stations and convenience stores, was split into a separate company.

In 2023, the Ragnar Investment Fund invested NIS 25 million in the company, at a valuation of NIS 740 million. After the fundraising, the company will be held by Lahav (31%), Uri Mansour (27%) who constitute the controlling interest, Delek Group (19%), Ragnar Fund (3%) and the public – 20%.

Delek Properties ended the first quarter of the year with revenue of NIS 14.5 million, similar to the corresponding quarter last year. The company reported net profit of NIS 2.5 million, down 49% from the corresponding quarter last year. As of the end of the quarter, the company had assets worth an estimated NIS 1.75 billion.

Delek Properties IPO comes at the end of a week in which there were two other IPOs on the TASE. Real estate and finance company Ampa, controlled by the Nakash brothers, raised NIS 600 million at a company valuation of NIS 3 billion, after money. Ampa also had to compromise on its valuation. Also this week real estate company Megiddo, controlled by Aura Investments, completed an IPO at a company valuation of NIS 781 million.

Published by Globes, Israel business news – en.globes.co.il – on July 17, 2025.