Matomy Plans Second Go at London IPO

New share sale slated for September, will be at a lower valuation with new underwriters.

Eyal Toueg

Matomy Media Group, the web-advertising company, is dusting off plans for an initial public offering in London, just two months after it pulled back from a planned share sale.

No details about the IPO have been finalized, including how the stock will be priced, how many shares will be sold or how much stock insiders will be selling alongside the company. However, Matomy has changed underwriters and will sell shares at a lower valuation, in an offering that may occur in September.

Matomy will probably be valued at somewhere between $300 million and $350 million, compared with a range of $380 million to $480 million the last time it sought to float shares in March. Then, it had planned to sell a 35% stake for $100 million, with insiders selling an equal number of their shares.

Lead underwriters Merrill Lynch Bank of America and UBS have been replaced by the Canadian investment bank Concord, which will work together with Israel’s Leumi Partners.

Leumi has already arranged meetings between Matomy and several large Israeli institutional investors who have expressed an interest in the IPO. Matomy executives will begin a roadshow in London in another 10 days.

Matomy needs to entice overseas investors. According to reports at the beginning of April, it was forced to pull the IPO because it couldn’t recruit enough investors in European Union countries to meet the 25% minimum required by British regulators to qualify for trading on the London Stock Exchange’s main board.

Leumi Partners, the investment banking arm of Bank Leumi, had already secured up to $30 million in orders, but Merrill Lynch and UBS failed to attract enough interest from overseas investors.

The company, which deals in performance-based Internet advertising, is 28.5%-owned by its chairman, Ilan Shiloach, the former CEO of McCann-Erickson-Kesher-Barel (Israel’s largest advertising firm). The Viola fund owns another 20.5% and CEO Ofer Druker 8.8%.

Matomy enables web publishers to monetize their sites and applications, and ensure payment. For advertisers and ad agencies, Matomy manages campaigns and provides tools for tracking results. The company employs 400 people, 250 of them in Israel, with the rest in Mexico, Netherlands, Germany and Spain.

It has 1,500 clients in 86 countries. Counting the results of Team Internet – a company it bought last year – Matomy had revenues of $217 million in 2013 and generated earnings before interest, taxes, depreciation and amortization (Ebitda) of $17.2 million. Its March prospectus estimated that revenues this year would reach $250 million.