May 07--The failure of Matomy Media Group Inc.'s IPO on the London Stock Exchange has not deterred its much smaller Israeli competitor Marimedia Ltd. from going ahead with its own IPO on London's Alternative Investment Market (AIM).
Both Matomy and Marimedia provide solutions for optimizing for the sale of online advertising space. Marimedia did not disclose details of its planned IPO in its notice to the AIM on Tuesday, but "The Financial Times" reports that the company plans to raise $30 million at a market cap of $160-190 million, after money, and that its shareholders plan to sell an additional $20 million worth of shares. Broker N+1 Singer is the underwriter and adviser.
Marimedia will use the proceeds to fund acquisitions and product development and open offices in London and New York.
Marimedia CEO Hagai Tal, co-founders and co-COOs Maia Shiran and Ariel Cababie, and Ehud Levy each own 25% of the company. Following the IPO, they will own 67-85% of the company, and external investors will own 15-33%. Tal and Levy own their stakes through Israeli Internet Private Equity, which has invested in other companies, including Taptica Ltd.
"The market is going down for companies that are trying to sell dreams and people are realizing that those dreams are not going to happen," said Tal in an interview with "The Daily Telegraph". "We come in with a very profitable company that is proven already. I prefer to float when the market is much more realistic, the market is looking for companies that are proven."
Marimedia, founded in 2007, posted $43.3 million revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) of $8.7 million (20% of revenue) in 2013. It has no debt. The Herzliya-based company has almost 100 employees.
Marimedia's Qadabra technology enables publishers to trade space on their sites electronically for the highest price possible. In its statement, the company said that charged customers an average of $33 per $100 that advertisers paid site owners which allocated them space.
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