Ahead of Shikun & Binui Energy Acquisition: Generation Raises NIS 1 Billion

Generation today completed a capital raising of NIS 1 billion, after receiving investor demand exceeding NIS 1 billion. The offering, conducted today (Thursday), was priced at a level that broadly reflects the company’s current market capitalization at the close of trading, following a 10% decline in its share price on the stock exchange. The transaction represents a key step in the company’s preparations to complete the acquisition of Shikun & Binui Energy.

The capital raising was supported by Israel’s leading institutional investors, who also received warrants that may be exercised in the future at an additional discount. The offering was led by IBI Underwriting, and Noked Capital is expected to become a significant shareholder in Generation.

The capital raise follows a period of consistent growth in the fund’s financial performance. In the first quarter of 2026, net cash flow from investments totaled NIS 44 million, compared with NIS 21 million in the corresponding period last year. Pre-tax profit amounted to NIS 227 million, while return on equity reached 36%.

The fund’s asset base currently approaches NIS 5.5 billion, its shareholders’ equity exceeds NIS 3 billion, and it distributes annual dividends totaling NIS 100 million.

As noted, the fundraising is intended to support the acquisition of Shikun & Binui Energy, which, if completed, is expected to significantly strengthen Generation’s energy operations and expand the scale of PowerGen’s activities. The two companies maintain complementary operations across conventional power generation, renewable energy, energy storage, and electricity supply. Generation believes that integrating these activities under a single platform will enable expansion across each of its core business segments and generate annual synergies worth tens of millions of shekels.

In addition to income-generating assets, the transaction includes a substantial pipeline of projects in various stages of development and construction, providing a foundation for future growth. Generation itself has a development and construction pipeline valued at approximately NIS 17 billion, a portion of which is not yet fully reflected in its financial statements. The fund believes that the maturation of these projects over the coming years is expected to unlock significant value.