Israeli Digital Media Firm Matomy Slates London IPO for Next Month

Matomy aims to raise $100 million at a company value of up to $550 million.

Bloomberg

Matomy Media Group, the Israeli digital advertising company, is getting ready for a $100 million initial public offering on the London Stock Exchange, with British newspaper The Telegraph reporting over the weekend that the sale will probably take place early next month.

The IPO will value the company at up to 346 million pounds ($550 million), with shares selling at between 3.05 and 3.90 pounds each. The company will issue at least 35% of its outstanding shares. Existing shareholders will also have the option of selling up to 60 million pounds of their stock, depending on demand.

Matomy is controlled by Israeli advertising mogul Ilan Shiloah, who owns 28.5% of the firm. Shiloah is the chairman of McCann Erickson Israel and has been chairman of Matomy since its founding in 2007.

Israeli firm Viola Private Equity owns a 20.5% stake. Other major shareholders are Matomy CEO Ofer Druker and Nir Tarlovsky, who own 9% and 8%, respectively. Employees and a number of small shareholders own the rest.

Matomy has started its road show in London and will continue in Boston, New York, Frankfurt and Edinburgh. UBS and Bank of America Merrill Lynch are leading the IPO, with LM Rothschild advising the company.

Leumi Partners Underwriting is leading the issue in Israel. Bank Leumi is considered one of McCann Erickson’s major customers in Israel and also has connections with Viola. It recently invested around $50 million in one of Viola’s new funds.

To promote the IPO, Leumi Partners Underwriting held another round of meetings on Sunday with large Israeli institutional investors and private investors. But because of the expected high demand by foreigners, no decision has yet been made on how much to make available to local investors. The final pricing will be made next week.

Matomy, whose clients include American Express, AT&T and HSBC, said last month the IPO “marks a significant step in our development and takes us closer to achieving our goal of being the world’s leading digital performance-based marketing company.”

Matomy had revenue of $193.5 million in 2013, up from $120.1 million in 2012. Adjusted earnings before interest, tax, depreciation and amortization rose to $13.1 million in 2013 from $9.1 million in 2012.

Eyal Toueg