Matomy starts selling shares on LSE to raise $70.1M in IPO
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Credit: Matomy

The Israeli digital marketing company started selling stock on the LSE today. The sale comes three months after Matomy canceled its previous attempt to IPO

Credit: Screenshot

Credit: Screenshot

After already announcing and canceling an IPO, Matomy Media Group has again decided to sell shares on the London Stock Exchange through an IPO that values the company at $350 million.

Matomy on July 8 started selling conditional shares on the London Stock Exchange’s High-Growth Sector and already shares are up. The shares started at 227 pence per ordinary share, but by Tuesday afternoon were trading at 237 pence. Matomy has listed roughly 18 million shares, or about 20.2% of the enlarged issue share capital of the company following the completion of the offer. The offer is expected to raise £41.0 million or about $70.1 million. Unconditional dealings are expected to start on July 11.

If at first you don’t succeed…

“Today marks another step forward in realizing our ambition to become one of the world’s leading digital performance-based marketing companies,” Matomy CEO Ofer Druker said. “We were disappointed to have postponed our Offer earlier in the year, but we are delighted to be announcing our Offer price  today with such strong investor support.”

Druker continued: “We are coming to market with a compelling proposition for investors, namely: our propriety technology, global presence and extensive experience, as well as our consistent record of strong growth in both revenue and EBITDA.  I am confident that Matomy, as a public company, will be able to capitalize on its achievements to date and continue to deliver for all its stakeholders.”

According to a source with knowledge of the IPO, the ‘book’ was fully covered, meaning that 100% of the share offering was subscribed by institutional investors in the U.K., E.U. and Israel.

Try try again

The stock sale comes about three months after Matomy had canceled its previous plans to launch an IPO. The Israeli digital marketing company was planning to raise $100 million through an IPO, but on April 4 announced that it was not proceeding with it 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.

It is unclear what conditions changed to convince Matomy to again make an about face, but when it last canceled the IPO, a source said it was more likely just postponed. Maybe with the sale being book covered Matomy was able to find the right investors and maybe the market conditions caused the lower raise. Either way, the company seems off to a good start so far. Canaccord Genuity Ltd. is the Key Advisor and Sole Bookrunner and Leumi Partners Underwriting Ltd. is the co-manager for the IPO.

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.

On June 23, Matomy acquired a majority ownership position in Munich direct navigation search company Team Internet AG,  in a deal that increased its stake to 70% from 20%.

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Aviva Gat

About Aviva Gat


Olah Chadasha and former finance reporter from New York City. Gat is a writer, runner and traveler who came to Israel for the good food and weather. She writes for Geektime’s English and global desk.

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