Israeli web recommendations platform Outbrain Inc. , chaired by founder and CEO Yaron Galai, has launched an IPO on Nasdaq. The company offered 8 million shares at $20 per share, raising $160 million in total, at a valuation of $1.1 billion. The valuation is well below the figure Outbrain aims for at the start of the operation, and less than the discounted value in the prospectus published last week. Related Outbrain sets terms for Nasdaq IPO Group Baupost Group invests $200 million in Outbrain Outbrain-Taboola breaks Taboola reports strong first-quarter data before SPAC merger Stocks are set to start trading today under the symbol OB. Outbrain rival Taboola recently started trading on Wall Street after its $2.6 billion merger with SPAC. The two Israeli companies, which lead the market, were on the verge of merging two years ago, but the move was eventually abandoned. Tabbouleh’s share price has fallen sharply since the company’s listing. In last week’s revised prospectus, the stock was set at $24-26, which would have given total revenue of $192-208 million with a valuation of $1.3-1.4 billion, down from the $1.8 billion we initially talked about. Outbrain and Taboola are both in digital ads. Each of them developed a platform for content recommendations on news websites. Upon completion of reading an article, the surfer receives suggestions for further reading, with the aim of generating traffic on the respective sites and extending their surfing time. Some of the recommended sites are sponsored by advertisers who pay Outbrain or Taboola, which in turn share revenue with news sites. Citigroup, Jefferies, Barclays and Evercore ISI act as joint directors of the offering. JMP Securities, Needham & Company, and LUMA Securities act as co-managers. Published by Globes, Israel business news – en.globes.co.il – on July 23, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
Outbrain cuts valuation in Nasdaq IPO
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