Matomy Media Group, a Tel Aviv-based digital advertising firm, announced on Thursday that it would not proceed with plans to raise $100 million in an initial public offering in London.
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The company explained that despite a positive reception from investors, it was facing volatility in the technology ad sector and had not received sufficient interest among European investors to meet the requirements of British law. “The requirements of the UK Listing Rules for a Premium Listing are that 25% of shares in issue must be held by investors within the European Economic Area. This requirement could not be met given the international profile of investor demand,” the company said in statement. The ad tech sector has slumped by 25% in recent weeks.
“This is a technical setback, which although disappointing, will not stop us striving to achieve our ambition to become one of the world’s leading digital performance-based marketing companies,” CEO Ofer Druker said after the board voted to retreat from the IPO.
The underwriting effort abroad was led by UBS and Merrill Lynch, which did not manage to attain the required level of interest in the company’s future stock. Locally, Leumi Partners Underwriting had attracted about $30 million in prospective stock purchases.
Founded in 2007, Matomy is controlled by chairman Ilan Shiloah, with a 28.5% stake. Shiloah is also chairman of McCann WorldGroup. Israel and also chairs Matomy’s company board. The company boast more than 1,500 customers, including American Express and Internet game firm Zynga.