Israel's Matomy says new requirement paves way for London float

JERUSALEM, July 7 Mon Jul 7, 2014 4:17am EDT

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JERUSALEM, July 7 (Reuters) - Israeli digital advertising firm Matomy Media Group said on Monday its renewed bid to float on the London Stock Exchange (LSE) comes after the bourse made its requirements more accommodating.

Matomy, which counts American Express and HSBC among its clients, said it trimmed its offering to $75 million, giving the firm a post-listing value of $350 million, and that it is "book covered".

The company had sought a $100 million offering at a value of $400 million back in March, but had to postpone when it could not raise enough money from EU investors following poor performance of high-profile Internet stocks.

Under LSE rules, Matomy needed at least 25 percent of its shares held by investors in Europe at the time of its listing, but the company said the bourse later lowered its requirement.

The LSE, according to Matomy, offered to make available a special track for Matomy and other Israeli technology companies to list on the main London exchange as "growth companies". In this category only 10 percent of shareholders need be in Europe - a level previously allowed only for European companies.

Matomy also said it had turnover of $68 million in the first quarter in 2014, on a pro forma basis, including results from Germany's Team Internet, up from $54 million a year earlier. Last month Matomy, raised its stake in Team Internet to 70 percent from 20 percent.

Matomy's offer is being led by Canaccord Genuity. (Reporting by Ari Rabinovitch, Editing by Tova Cohen)

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