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Share Price Information for HSBC Holdings (HSBA)

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Share Price: 693.40
Bid: 695.20
Ask: 695.40
Change: 2.00 (0.29%)
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Open: 689.30
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Israeli online ad firm Matomy mulls overseas share sale

Mon, 16th Sep 2013 12:38

* Expects 2013 sales to jump to about $200 mln

* Growth boosted by two U.S. acquisitions

By Tova Cohen

TEL AVIV, Sept 16 (Reuters) - Israeli digital advertisingfirm Matomy Media Group is looking to a stock market flotationoverseas or a private placement to fund its growth, thecompany's chief executive said.

Matomy, whose clients include American Express,AT&T and HSBC, helps advertisers to market goodsand services through its network of online publishers. It earnsa fee for every transaction completed through its platform sothat companies pay only for results in what is known asperformance-based advertising.

"There is a window of opportunity. I think in the next monthor two we will have to decide where we are going and when,"Chief Executive Ofer Druker told Reuters.

He declined to say how much the company would seek to raise,other than to say it would be a "meaningful" amount.

But a market source who asked not to be named said it wouldbe about $100 million.

If the company decides to go for an initial public offeringit would be in one of the top capital markets abroad, Drukersaid.

Matomy's revenue in 2013 is expected to reach around $200million, up from $120 million in 2012 and the company isprofitable. Growth was driven by two U.S. acquisitions this year- digital media agency MediaWhiz and mobile affiliate networkMobaff.

Chairman Ilan Shiloach, head of Israeli ad agency McCannWorldgroup Israel, holds a 29 percent stake in Matomy. ViolaPrivate Equity owns 21 percent and Druker, who served 14 yearsin Israeli military intelligence, holds 9 percent.

Matomy's competitors in performance-based advertisinginclude Sweden's TradeDoubler and Berlin-based Zanox,a joint venture between German media group Axel Springer and Swiss PubliGroupe. ValueClick in the United States is the world's biggest player.

The online advertising market was estimated to be worth $100billion in 2012, with performance-based accounting for twothirds.

About half of Matomy's business is in the United States andone quarter is in Europe, mainly Germany, Spain, the NetherlandsBritain and France.

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