Israel’s tech IPO playbook is being rewritten as Wall Street raises the bar
For more than two decades, the path for ambitious Israeli technology companies was clear: build in Israel, expand globally, and eventually list on Wall Street.
A Tel Aviv Stock Exchange (TASE) listing was often viewed as a second-best option, a destination for companies that could not attract enough attention from U.S. investors.
But a new strategy report from investment bank Jefferies argues that the traditional route may no longer be the best one. As the U.S. technology IPO market has become increasingly dominated by large, mature companies, Israeli startups may need to rethink the order in which they access public markets.
The report, titled “Rethinking The Israeli IPO: A Modern Playbook for Israel’s Best Technology Companies,” argues that for many Israeli technology companies, the more effective path may begin in Tel Aviv: first building a public track record and institutional shareholder base on the TASE before expanding to Wall Street.
The recommendation comes as the bar for technology companies seeking U.S. listings has risen sharply.
According to Jefferies, technology companies entering U.S. public markets between 2025 and mid-2026 had a median market capitalization of approximately $5.5 billion, compared with $1.6 billion between 2017 and 2019.
The median technology company going public in the U.S. during that period generated more than $800 million in revenue and more than $100 million in EBITDA.
By comparison, earlier-stage growth companies that list before reaching significant scale often struggle to attract institutional investors and maintain valuation levels.
Jefferies found that between 2022 and 2025, technology companies valued below $5 billion at IPO experienced a median share-price decline of nearly 20% within their first three to six months of trading, with losses reaching approximately 30% over time.
Israeli technology companies have faced similar challenges. Of the 19 Israeli technology companies that went public in the U.S. since 2020 and remain publicly traded today, only three are currently trading above their IPO price, according to the report. The median company in that group is down approximately 60% from its offering price.
The report argues that companies that enter U.S. markets before reaching $500 million to $1 billion in revenue risk being overlooked by large investors, suffering from low liquidity and becoming vulnerable to valuation pressure.
At the same time, Jefferies argues that the TASE has undergone significant changes that make it a more attractive venue for technology companies.
Historically, Israeli IPOs were largely designed for local investors, with Hebrew-language disclosures and limited international participation. Today, the exchange supports global-style offerings, including English-language filings, U.S. GAAP reporting options, international roadshows, bookbuilding processes, and broader analyst coverage.
The TASE also changed its trading schedule in January 2026, moving from a Sunday-to-Thursday schedule to Monday-to-Friday trading, aligning it more closely with global markets.
According to figures cited by Jefferies, average daily trading volume reached $2 billion in 2026, up 65% from 2025, while foreign investor participation reached an all-time high of 33% in May 2026.
Foreign institutional holdings of TASE-listed equities increased from $52.3 billion in September 2023 to $114.7 billion by February 2026.
The report also highlights the performance of the Israeli market during periods of geopolitical uncertainty. According to Jefferies, the TA-125 index rose approximately 26% in 2024 and 50% in 2025, outperforming the S&P 500 by 17% in 2025.
Jefferies argues that the future model for Israeli technology IPOs should combine two sources of demand: international investors and domestic institutional capital.
The first engine is global technology investors. According to the report, global small- and mid-cap equity funds exceeded $1 trillion in assets under management at the end of 2025, creating demand for international technology companies outside the U.S.
In Jefferies-led global TASE offerings, approximately 75% of shares were allocated to international institutional investors.
The second engine is Israel’s domestic pension and savings system, which provides a long-term pool of capital seeking exposure to growing companies.
Jefferies argues that this domestic institutional demand can create a more stable shareholder base and provide companies with a stronger foundation after listing.
Rather than viewing an IPO as a single event, Jefferies proposes a three-stage approach.
The first stage is a global IPO on the TASE, structured to attract both international technology investors and Israeli institutions.
The second stage is a period of execution, during which companies build a public track record, establish analyst coverage, and potentially benefit from inclusion in Israeli indices.
The third stage is a U.S. dual listing once the company has reached sufficient scale and demonstrated its ability to operate as a public company.
Under this approach, companies would arrive on Wall Street from a position of strength rather than attempting to prove themselves for the first time.
Jefferies cites companies such as Nayax, which first built institutional ownership and liquidity in Israel before pursuing a U.S. dual listing. It also points to Palo Alto Networks adding a TASE listing without raising new capital as an example of companies using the Israeli market to expand their investor base.
