Matomy abandons IPO plans just a week after another Israeli company, Wix.com, also decided not to sell stock. Both companies cited market conditions for canceling the sales
Israeli digital marketing company Matomy Media Group Ltd. has decided to scrap its plans to sell its stock on the London Stock Exchange.
Matomy on April 4 announced that it would not proceed with its IPO due to requirements of the UK Listing Rules that say 25 percent of shares in issue must be held by investors within the European Economics Area. Matomy said this requirement could not be met due to its “international profile of investor demand.”
The company also cited “negative share price performance and volatility in the ad-tech sector” as reasons it decided to drop the IPO.
Matomy had just announced its intention to raise $100 million through an IPO on March 10. A source with knowledge of the company said the IPO is more likely just postponed rather than canceled and that Matomy may later seek to sell its shares once market conditions improve.
Adverse market conditions have also halted another Israeli company Wix.com’s plans to sell stock on the public market. Wix on March 31 withdrew its own request to raise money on the NASDAQ exchange citing adverse market conditions. The Israeli global web development platform had just announced its intent to sell 11 days before the withdrawal.
Based in Tel Aviv, Matomy is a digital performance-based marketing company that helps companies acquire new customers. The company only charges clients if their marketing campaign reaches certain predefined results, such as measurable conversions into service or product sales, customer acquisitions and software or mobile app downloads. Launched in 2007, Matomy has more than 1,500 customers, including American Express, Experian and Zynga, and it uses more than 16,000 registered digital media sources. Matomy serves more than 85 countries with 388 employees in nine different locations worldwide.
The company has been profitable since 2008. For the year ending Dec. 31, 2013, the company’s revenues reached $193.5 million and its EBITDA was $13.1 million.
Matomy intended to use the proceeds from the IPO to accelerate its growth and increase its ownership of Team Internet AG to 70% from 20% (about $19.3 million). Team Internet is a service provider in the direct navigation search market with revenues of $23.3 million in 2013.
Matomy also intended to acquire the remaining 20% in its Mexican subsidiary for about $0.7 million, and to repay $7 million in term loans.