MediaMind Readying for Nasdaq Float

Execs are on road show in U.S., say market sources; investors staying on board

MediaMind Technologies, until now known as Eyeblaster, has updated its shelf prospectus in preparation for an initial public offering on Nasdaq. The company plans to trade under the ticker symbol MDMD.

MediaMind, which makes software to manage online advertising campaigns, hopes to raise $92 million at a price of $14 to $16 per share. In its previous prospectus, the company said it was planning to raise up to $115 million.

If the company manages to float at a share price of $16, it will achieve a post-money valuation of $286 million. That value climbs to $292 million after the money if the underwriters use the greenshoe option and sell more shares to meet excess demand. If its share price is $14, the company will be valued at $250 million to $256 million, depending on exercise of the greenshoe option.

Market sources say the company, which is based in New York, is readying for its IPO and that representatives are on a road show in the United States in preparation. Past prospectuses had mentioned that the company's investors were looking to sell their shares, but the current one says they're planning to keep their holdings.

American investors do not smile when initial investors flee as soon as the company goes public. By staying invested, they're voicing their confidence in the fledgling company.

MediaMind's biggest investor is Sycamore Technologies, which holds 33.8% of its shares. After the IPO it's expected to be left with 24.3%. Insight Ventures holds 22.5% of the shares, and will be left with 16.2%. Other investors include Isramtec and Amir Harduf, CEO and founder Gal Trifon, and founder Ofer Zadikario.

The company says it is expecting second-quarter revenues to be $20.5 million to $22 million, compared to $16 million in the parallel quarter.

Operating expenses are expected to run at $15.1 million to $16.2 million, as opposed to $12.1 million in the parallel, due to increased manpower expenditures. Net profit is also expected to increase, to between $4.3 million and $4.7 million, up from $3.1 million.