The Increasing Attractiveness Of Tel Aviv Stock Exchange Indices For Dual Listing Of Israeli Companies Traded In The U.S.

Currently, 15 companies meet the market capitalization criteria for inclusion in the TA-90 Index, compared to 21 companies that were eligible in November 2023
In total, 22 Israeli companies meet the current market capitalization requirement for inclusion in the flagship TA-125 Index, with a combined market value of approximately NIS 250 billion
Inclusion in TASE’s flagship indices would enable these companies to benefit from “home market” advantages, including substantial passive demand, increased liquidity and turnover of their shares, and diversification of their investor base

In recent years, we have witnessed a significant increase in the volume of assets under management in the Tel Aviv Stock Exchange equity market. As of the end of February 2026, the total market capitalization reached approximately NIS 2.4 trillion. Public holdings in exchange-traded funds (ETFs) and index-tracking funds that follow local equity indices amounted to approximately NIS 143.3 billion, compared to approximately NIS 78 billion at the end of 2024 (of which approximately NIS 102.5 billion and NIS 54 billion, respectively, are linked to indices compiled by TASE).

Additionally, the open-ended mutual fund market (domestic equities, excluding index-tracking funds) recorded a sharp increase in assets under management, reaching approximately NIS 39 billion, compared to approximately NIS 19 billion at the end of 2024.

A recent analysis comparing the minimum market capitalization required for inclusion in TASE flagship indices based on index composition updates since November 2023 - with the evolution of the market value of Israeli companies traded in the U.S., reveals a clear picture of the potential embedded in dual listing for global Israeli companies.

Eligibility for TASE Indices

Out of approximately 40 large Israeli companies traded in the U.S. that were examined, a substantial portion would be eligible for inclusion in the leading TASE equity indices if they were dual listed today. Seven companies meet the minimum threshold for inclusion in the TA-35 Index (compared to 16 in November 2023), and an additional 15 companies fall within the relevant range for the TA-90 Index (compared to 21 in 2023).

The importance of inclusion in these indices translates directly into significant demand from passive investment vehicles tracking them, including actively managed mutual funds that focus on index constituents.

Among approximately 40 companies that chose to list their shares in the U.S. (without pursuing dual listing) since 2019:

13 companies met the market capitalization criterion for inclusion in the TA-35 Index for part or most of the period since their listing but no longer meet it today.
14 companies met the market capitalization criterion for inclusion in the TA-90 Index for part or most of the period but no longer meet it today (four of these companies do not currently meet even the TA SME-60 Index threshold).

Rising Entry Thresholds and Market Dynamics

The decline in eligibility is primary explained by two factors:

First, the minimum market capitalization thresholds for entry into TASE flagship indices have risen sharply in recent years.

As of mid-March 2026 (ahead of the upcoming semi-annual index update in May 2026), compared to November 2023:

TA-35 minimum market cap (~NIS 15.2 billion today): increase of over 150%.

TA-90 minimum market cap (~NIS 2.9 billion today): increase of over 135%.

TA SME-60 minimum market cap (~NIS 1.3 billion today): increase of over 110%.

Minimum Required Market Capitalization for Inclusion in Main Indices (NIS Billion)
Update / Index	May 2026*	Nov 2025	May 2025	Nov 2024	May 2024	Nov 2023
TA-35	15.2	10.75	7.7	6.9	7.2	6.0
TA-90	2.9	2.5	1.9	1.6	1.5	1.2
TA SME-60	1.35	1.3	0.9	0.7	0.7	0.65

* Data as of mid-March 2026; final thresholds may differ in the upcoming May update

Second, more than 60% of the companies analyzed are currently trading at their lowest market capitalization compared to all reference dates for semiannual index updates since November 2023.

This combination of rising thresholds and declining valuations has reduced the number of companies meeting eligibility criteria.

Passive Investment Flows and Market Impact

As of Mid-March 2026, assets under management in index-linked funds amount to approximately NIS 50 billion for the TA-125 Index, NIS 20 billion for the TA-90 Index, and NIS 17 billion for the TA-35 Index.

The data indicates that companies eligible for the TA-35 Index face potential passive demand of approximately 7% on average (median 7.5%) of their public float, while companies eligible for the TA-90 Index face potential passive demand of approximately 12% on average (median 13%).

To illustrate the magnitude of index holdings, several prominent examples demonstrate significant portions of company value held through flagship indices.

Flagship Indices	Captive Market Cap by ETFs & Tracking Funds (NIS Millions)	Market Cap 19/3/2026	Public Holdings 19/3/2026	% of Market Cap	% of Float	Company Name
TA-35, TA-125	3,635	55,029	55,029	6.6%	6.6%	Tower
TA-35, TA-125	3,236	44,104	44,104	7.3%	7.3%	Nova
TA-35, TA-125	1,435	37,419	20,270	3.8%	7.1%	OPC
TA-35, TA-125	1,780	34,409	24,038	5.2%	7.4%	Next Vision
TA-35, TA-125	2,337	32,779	32,386	7.1%	7.2%	Enlight
TA-35, TA-125	1,087	23,803	14,727	4.6%	7.4%	Camtek
TA-35, TA-125	1,682	22,570	22,570	7.5%	7.5%	Nice
TA-35, TA-125	890	20,986	11,763	4.2%	7.6%	ICL
TA-35, TA-125	1,419	19,278	19,247	7.4%	7.4%	Ormat
TA-90, TA-125	691	13,960	5,253	5.0%	13.2%	Kenon
TA-90, TA-125	916	13,386	7,358	6.8%	12.4%	Doral
TA-90, TA-125	739	11,555	5,685	6.4%	13.0%	Energix
TA-90, TA-125	678	9,252	4,820	7.3%	14.1%	Matrix
TA-90, TA-125	469	9,183	3,944	5.1%	11.9%	Meshek Energy
TA-90, TA-125	578	7,202	4,321	8.0%	13.4%	Turpaz
TA-90, TA-125	682	7,146	5,720	9.5%	11.9%	Energian
TA-90, TA-125	356	6,879	2,865	5.2%	12.4%	Nayax
TA-90, TA-125	588	6,408	4,493	9.2%	13.1%	Nofar Energy
TA-90, TA-125	484	6,242	3,899	7.8%	12.4%	Formula Systems
TA-90, TA-125	436	4,735	3,275	9.2%	13.3%	Hilan
TA-90, TA-125	392	4,600	2,996	8.5%	13.1%	One Technologies
TA-90, TA-125	433	4,143	3,111	10.4%	13.9%	Max Stock
TA-90, TA-125	216	4,076	1,658	5.3%	13.0%	Delta Galil
TA-90, TA-125	593	3,874	3,874	15.3%	15.3%	Gilat
TA-90, TA-125	270	2,660	2,010	10.1%	13.4%	Danel

Regulatory Environment and Advantages of Dual Listing

While dual listing was once perceived as a regulatory burden, numerous steps have been taken over the years to facilitate a simple, fast, and low-cost dual listing process on TASE. A company seeking dual listing publishes a registration document (with an exemption from listing fees) containing only technical details and thereafter continues to operate under the regulations of the foreign exchange, with no additional requirements from the Israeli regulator (including no obligation to translate reports into Hebrew).

The advantages of dual listing include expanding the investor base, increasing liquidity and trading turnover, extending trading hours, and benefiting from the “home bias effect,” whereby Israeli companies are more recognized locally and stand out in size relative to their presence abroad.

A company that lists its shares on the local exchange automatically benefits from investments by ETFs and index-tracking funds. Given the sharp increase in public holdings in such funds, these represent guaranteed and relatively substantial passive investments.

Conclusion:

The potential for dual listing of large Israeli companies traded in the U.S. whose market capitalization qualifies them for inclusion in the TA-125 Index - currently includes 22 companies with a combined market value of approximately NIS 250 billion.

* The data excludes CyberArk, which was acquired by Palo Alto Networks (listed on TASE), as well as five additional companies that met the TA-125 inclusion criteria but were delisted during the period.