The digital ad company’s valuation for the IPO will reportedly be $400-500 million.
As things stand at the moment, the first Israeli IPO in London this year will be XL Media Ltd., followed by Teddy Sagi’s SafeCharge Ltd., and digital ad company Matomy Media Group Inc. in early April.
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In a notice to the London Stock Exchange today, Matomy announced that it plans to raise £60 million ($100 million), although it did not disclose how many shares it will issue.
Matomy’s valuation for the IPO will reportedly be $400-500 million, before money, and $500-600 million, after money. The company will list on the London Stock Exchange’s main market, not the Alternative Investment Market (AIM). The float will be at least 35%.
One of Israel’s top admen, Ilan Shiloah, owns 28.5% of Matomy (worth an estimated $128 million. Viola Private Equity owns 20.5% (worth $92 million), Matomy co-founder and CEO Ofer Druker owns 8.8% (worth $40 million), and Nir Tarlovsky, who co-founded with Shiloah TheTime technology incubator for new media start-ups, owns 7.3% (worth $33 million).
Matomy has 1, 557 clients in 85 countries, including American Express Inc. (NYSE: AXP) and Zynga Inc. (Nasdaq: ZNGA). It has 388 employees. The company’s success is driven by the steady move from hard copy to online advertising. The global online advertising market totaled $88.8 billion in 2012, and is projected to reach $156.2 billion in 2016. Mobile advertising is the fastest growing media channel, with a 54% projected growth rate in 2012-16, compared with 30% growth for social networks advertising.
Although most of Matomy’s growth is organic, some has come through acquisitions. It has made three acquisitions to date: US digital ad agency MediaWhiz for $10 million; US company Adperio; and Mexican company Ergos Media.
Matomy will use the net proceeds from the offering to increase its stake in Team Internet, which handles domain monetization, from 20% to 70% for $19.3 million; buy out its partner in Ergos Media (20% of the company for $700, 000); and repay part of its debts ($7 million).
Published by Globes [online], Israel business news – www.globes-online.com