Israeli laser technology company Civan Lasers is preparing for a potential initial public offering on the Tel Aviv Stock Exchange at a pre-money valuation of NIS 1.2 billion to NIS 1.8 billion. The Jerusalem-based business is reportedly targeting a listing in the coming months. Its defense and industrial laser technologies underpin investor interest in the proposed offering.
Planned Fundraising and Shareholder Sales
Civan is seeking to raise approximately NIS 250 million to NIS 350 million in new capital from Israeli investors, although the terms have not been finalized. The transaction could also involve an offer for sale by existing shareholders. Elah Fund and United States investment firm First Manhattan, which together reportedly hold roughly half the shares, are among those expected to sell shares.
The valuation would exceed the estimated NIS 1.1 billion assigned to Civan in its latest private funding round, equivalent to approximately $350 million. Some stakeholders are reportedly pursuing a flotation value toward the upper end of the proposed range. Neither a confirmed offering date nor final pricing has been disclosed.
Laser Technology Across Civilian and Defense Markets
Founded in 2008 by physicist and entrepreneur Eyal Shekel, Civan develops high-power laser systems for industrial and defense applications. Its original focus included precision welding of advanced materials, where controlled laser energy can improve manufacturing processes. The company has since expanded into military systems while also applying its technology to airborne and space-based optical communications.
Civan supplies technology used in Iron Beam, the laser-based interception system developed by Rafael in collaboration with Elbit Systems. Designed to complement Israel's existing air defenses, Iron Beam targets threats including drones, rockets, and other airborne projectiles. Laser interception offers potentially much lower per-shot costs than conventional interceptor missiles, although performance can be constrained by visibility and weather conditions.
Elbit Partnership and Commercial Rights
Elbit Systems participated in an earlier Civan fundraising round and reportedly owns approximately 5% of the company. Its cumulative investment is estimated at less than $10 million, while Civan operates from Jerusalem's Har Hotzvim technology district with around 200 employees. A contractual arrangement granting Elbit exclusive defense-market sales rights subsequently became a source of disagreement.
Following a dispute over Civan's ability to market its laser systems independently, the companies reached a settlement through a process overseen by Israel's Ministry of Defense. Under the reported arrangement, sales in Israel are handled exclusively through Elop, Elbit's laser technology subsidiary. Civan may independently sell systems below one kilowatt in international markets, subject to the agreed restrictions.
Financial Outlook and IPO Market Context
Civan's annual revenue is believed to have reached tens of millions of dollars in recent years, although audited figures have not been disclosed. Its future order backlog is estimated at hundreds of millions of dollars across domestic and overseas customers. Those reported commitments could support the proposed valuation, but they should not be treated as recognized revenue.
The anticipated listing comes amid continued interest in Israeli defense companies despite weaker share-price performance across parts of the sector. In 2026, 21 companies have reportedly listed on the Tel Aviv Stock Exchange at combined valuations of approximately NIS 33 billion, including seven defense businesses. Among the notable deals was defense simulator manufacturer Bagira's offering at a reported post-money valuation of around NIS 3.4 billion.
A successful IPO would give Civan access to public capital as it expands its laser technology business across commercial and military markets. It could also provide an opportunity for early investors and founder Eyal Shekel, who reportedly owns more than a quarter of the company, to realize part of their holdings. For now, the proposed valuation, fundraising amount, and timing remain preliminary rather than confirmed transaction terms.
Source: Globes