The company will use the proceeds to expand its operations, launch mobile operations, and enter new markets.
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/ By Aviv Levy /
Software monetization tools developer Somoto Ltd. has raised NIS 20 million in its IPO on the Tel Aviv Stock Exchange (TASE) at a company value of NIS 135 million, after money. The offering was oversubscribed, with NIS 55 million in orders.
Somoto said that it would use the proceeds to expand its operations, launch mobile operations, and enter new markets.
Somoto was founded in 2009 by Eyal Yaakov and CEO Ben Garrun, who control it. The company posted $9.6 million revenue in 2012, up 175% over 2012, and swung to a net profit of $400, 000. It posted a net profit of $1.1 million for the first quarter of 2013.
The valuation report by Fahn Kanne & Co. Grant Thornton, which was appended to the prospectus, forecasts strong business development in the coming years. It predicts 160% revenue growth in 2013 to $23 million, and a further 100% growth in 2014 to $46 million.
Somoto’s two biggest customers are Perion Networks Inc. (Nasdaq:PERI: TASE:PERI), which accounts for 42% of its revenue, and Babylon Ltd. (TASE:BBYL), which accounts for 24%. In July, Babylon signed an agreement to invest $4.6 million in Somoto for a 4.6% stake in the company.
Published by www.globes-online.com