Could this inspire other Israeli public companies abroad to trade on the Tel Aviv Stock Exchange?
The Israel-based Matomy Media Group announced on Monday that they will now be listed on the Tel Aviv Stock Exchange (TASE), adding a new home to their current place on the High Growth Segment of the London Stock Exchange. The news comes after the company received approval as a dual listed firm by the exchange.
According to their statement to the press, while Matomy stocks in London will continue to trade as they have been, as of the next quarterly review they will join the TA Composite, TA MidCap-50, TA MidCap, TA Tech Elite, TA BlueTech, and TA Technology indexes. At this point there is no set yet for when Matomy stocks will become available for trading on the TASE.
Matomy is considered to be one of the leading digital marketing companies in Israel, working with a range of performance advertising and other media avenues, serving a global customer base. Started in 2007 under its current form, Matomy was co-founded by CEO Ofer Druker, Adi Orzel, and Kfir Moyal. With their headquarters in Tel Aviv, they have offices across Europe and the U.S.
Why would Israeli companies choose London for going public?
In a brief overview of some of the Israeli companies who have IPOed in recent years, a fair number of them have gone for listings on the Alternative Investment Market (AIM). While still under the London Stock Exchange, this is a lower level market that is often far more comfortable for smaller companies to offer their stocks while they continue to grow, due in part to looser regulation than in the higher range markets. One such company is Matomy competitor Marimedia.
As a more established company, Matomy is in the Main Market of the LSE, as is XL Media. Since Israel is such a tiny market that is generally very difficult to scale in, the idea of going global is hardwired into the Israeli startup DNA. This is often true for both funding as well as markets, and the list of companies that have gone public in Tel Aviv first before opening up abroad is long. That is part of the reason that Matomy’s move to be traded in Israel is even more interesting and perhaps compelling.
When asked why Matomy had come home to Israel, CEO Ofer Druker told Geektime, “We’ve always been an Israeli company with headquarters here.” Beyond simply opening up an opportunity to raise more funding for his company, Druker feels a sense of patriotism and responsibility to the community that helped raise them up. “We have many Israeli investors who told us that we should be here,” he explains, adding that it is easier for them to trade here and allow more people in Israel to enter the market. Druker notes that as a digital media firm, being in Israel is the right place for them to be traded since Israel has a real appreciation and knowledge for technology. “It’s a natural home for us and it’s an honor to be traded here,” he says.
Matomy is taking a bold and important step in joining the TASE that should send a message to the tech industry and investors. Druker has a strong sense that Israel is the heart of where his company began building their success and sees a purpose in giving back to the community by becoming more accessible.
What is even more interesting here is the possibility of a significantly stronger ecosystem as companies who have already made it to IPO status encourage others to build bigger companies, a thought that was often rejected by those who said the scene could not sustain them. If more public companies like Matomy end up joining the Tel Aviv Stock Exchange, that’s another significant step in the startup nation becoming a scaleup nation.