Digital ad firm Dianomi plots £70m London stock market float

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Digital advertising firm Dianomi today unveiled plans for a stock market float in London, marking another boost to the City’s booming initial public offering (IPO) scene.

Dianomi, which specialises in paid content for financial services clients, is targeting a £70m valuation and aiming to raise £25m through listing on London’s Aim market this month.

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The company, which was founded in 2003, enables brands to deliver so-called native advertising on publishers including Reuters, Bloomberg and the Wall Street Journal.

Its clients include seven of the world’s top 10 largest asset management companies, seven of the top 10 largest wealth management firms in the US and half of the top 10 largest Wall Street banks.

Chief executive Rupert Hodson said the IPO would help Dianomi cash in on growing demand for digital ad services among financial services clients, as well the ongoing shift to online news consumption.

It follows a strong year of growth for the company, which pulls in the majority of its revenue from the US. Total revenue grew almost 60 per cent last year to £28.4m, while earnings rose from £250,000 to £2m.

“With consumers now having transferred in large numbers to reading news online via phone, tablet or laptop, this has created significant sustainable organic growth for Dianomi, as well as opportunities to expand our presence in the mobile and video segments alongside entering new sectors where our premium positioning can naturally transfer,” Hodson said.

Native advertising allows brands to place text or video promotions such as advertorials that match the format of the publisher’s platform. Revenue is generated on a per-click or per-view basis.

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Dianomi also said it was well positioned for future growth due to a lack of reliance on third-party cookies, which are being phased out by major platforms such as Google amid an overhaul of how advertisers track consumers online.

Panmure Gordon is acting as nominated adviser, sole broker and sole bookrunner on the listing.

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