The primary market on the Tel Aviv Stock Exchange is gearing up for another strong year, after twenty companies were newly listed in 2025. What appears to be the second-largest flotation in Tel Aviv in 2026 (after Rami Levy Real Estate) is that of Prodalim Group, which has filed a prospectus and seeks to raise an estimated NIS 400-500 million at a pre-money valuation of NIS 2-2.5 billion. The offering will be led by IBI Underwriting and Barak Leumi Underwriters.

The flotation of Prodalim does not include an offer for sale by the owners, the Berezovsky family, the family of former Shin Bet (Israel Security Agency) chief Ronen Bar. Prodalim was founded by Bar's father, Dr. Noach Berezovsky (85), who is the company's chairperson and president and holds 28.5% of the shares. Berezovsky's son Tsahi Barak is CEO and chief sales manager and holds 27.1%, while his daughter Reut Berezovsky-Guttman holds 6.9%.

Other shareholders in the company are Idan Ofer's Israel Corporation (TASE: ILCO), which invested in Prodalim last year and holds 29% of the shares, and insurance and finance group Harel (TASE: HARL), which holds 8.6%.

Prodalim, which was founded in 1991, develops, produces, and sells natural solutions for the food and beverages industry, focusing on aromas and flavors (the field of the listed company Turpaz). According to its prospectus, it specializes in the processing of plant-based raw materials from which it produces natural ingredients, including juice concentrates, citrus oils, aroma and flavor essences, dietary fibers, natural food colorings, and so on.

In 2025, the company recorded revenue of $341 million, 2.5% more than in 2024, and EBITDA of $36 million. Operating profit in 2025 was $24.8 million, 18% higher than in 2024.

Prodalim's main activity is in Europe. 27.2% of its sales in the first nine months of 2025 were in Germany, 41.5% in the rest of Europe, and 28.9% in the US.

Prodalim intends to use the proceeds of the offering, together with its own resources and other sources of finance, for its day-to-day business activity and to implement its business strategy, which includes acquisitions in order to expand its existing areas of activity, development of new products, and investment in research and development.

One area in which Prodalim is active is Solos, solutions for reducing the alcohol content of beverages or removing it altogether while preserving their taste and aroma characteristics, using the special technology of a company acquired in 2022. The company describes this as an innovative and complementary growth engine for its business.

According to the company, there has been a substantial decline in the sale of alcoholic drinks because of greater awareness of their effects on health and healthy lifestyle trends. Correspondingly, the global alcohol-free and reduced alcohol beverages market has been growing rapidly (from $170.7 million in 2019 to $509.6 million in 2023, with an outlook of over $1 billion this year). Prodalim seeks to expand in this area and is setting up service centers and factories in the US and Europe. This is currently the company's smallest area of activity, with revenue of under $1 million and negative EBITDA of $491,000 in the first nine months of 2025.

As mentioned, among the main shareholders is The Israel Corporation, which invested $42 million in Prodalim last year for an allocation of new shares at a pre-money valuation of $370 million, and at the same time bought more shares. Altogether, Israel Corporation invested $116 million (NIS 400 million at the exchange rate at the time). Assuming that Prodalim's flotation is completed at a valuation of NIS 2 billion, Israel Corporation will hold shares worth NIS 580 million, a handsome return within a year (that could have been greater were it not for the appreciation of the shekel against the US dollar).

According to the prospectus, in the first nine months of 2025, CEO Tsahi Barak's compensation totaled $672,000, while that of chairperson Noach Berezovsky was $449,000.

Barak's employment terms will be updated after the flotation. For five years, he will be entitled to a gross monthly salary of NIS 120,000 with an annual raise of 5% from 2027 onwards. Subject to meeting adjusted EBITDA targets, he will be entitled to an annual bonus of 1.25% of EBITDA up to twelve monthly salaries.

Noach Berezovsky will be entitled to a gross monthly salary of NIS 90,00,0 rising by 5% annually from 2027, and a bonus of 0.95% of the minimum adjusted EBITDA that is set, up to six monthly salaries.