LONDON (Alliance News) - London's burgeoning initial public offering market got another boost Monday as Israeli digital marketing company Matomy Media Group Ltd said it will list on the Main Market and intellectual property company Tekcapital PLC said it will list on AIM.
The London market for new IPOs has accelerated at the start of 2014, after several years of below-average activity in the wake of the financial crisis. The charge has been led by retailers and biotechnology companies, but the new listing come from a variety of sectors.
The news of the latest proposed listings came as Pets At Home said it now expects conditional dealings in its IPO to start March 12, a day earlier than it previously expected, while Indian online fashion retailer Koovs listed on AIM with an initial market capitalisation of about GBP36.2 million and quickly shot higher.
In a statement, Tel Aviv-based Matomy said it is looking to raise about USD100 million, or GBP60 million, in its proposed IPO, money it will use to buy up stakes in subsidiaries and a minority holding, pay down loans and to potentially make acquisitions as well as employ more product development staff.
The digital advertising company made revenues of USD193.5 million in 2013, up from USD120.1 million in 2012, and adjusted earnings before interest, tax, depreciation and amortisation of USD13.1 million, up from USD9.1 million.
It didn't give an estimate for its initial market capitalisation, but its owners are expected to sell a stake of at least 35%.
In its statement, Tekcapital said it will use the money it raises in its proposed AIM IPO to accelerate sales by expanding its sales and marketing team as well as developing its technology algorithms and
indexing. It didn't give any details of of the potential size of the IPO.
Tekcapital uses its technology to source university discoveries and intellectual property from over 3,300 universities and research institutions in over 160 counties. Its clients then use this to help innovate and protect their products or services by identifying relevant cutting-edge technology and intellectual property acquisition opportunities which have been developed by those universities and research institutions.
The valuations of companies listing in London have been rising in recent weeks, with several pricing the new issues at the top end or even above early expected valuations. However, most of the new listing have been meeting strong demand from investors, and valuations continued to rise after the IPOs.
Koovs PLC, which listed on AIM Monday, saw its shares move sharply higher from its 150 pence placing price. The stock was trading at 184 pence Monday morning, giving it a market capitalisation of about GBP44.4 million, up from its initial valuation of GBP36.2 million.
The online retailer raised GBP22.0 million by placing 14.7 million shares, money that will be used to build stock, increase marketing and fund operating losses as the business continues its rapid growth.
Investors are hoping the company will emulate ASOS PLC, the UK-based online retailer that is now by far the biggest stock listed on AIM.
Koovs' chairman is British multi-millionaire media entrepreneur and politician Lord Waheed Alli, who was chairman of ASOS until November 2012. He founded the company along with former ASOS product developer Robert Bready.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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