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UK-based digital advertising PE-backed company Dianomi completes IPO

Dianomi

Dianomi, a London-based provider of native digital advertising services, has today listed itself on the AIM market of the London Stock Exchange. Notably, Dianomi is the first UK company to go public under the Business Growth Fund (BGF) portfolio. 

The IPO price represents a market capitalisation on the admission of £82 million. In 2018, BGF – the UK & Ireland’s most active growth capital investor – invested £6.3 million in Dianomi. 

Deliver native advertisements

Founded by Rupert Hodson (CEO), Raphael Queisser (COO), and Cabell de Marcellus (CTO) in 2003, the company enables premium clients to deliver native advertisements to a targeted audience across the desktop and mobile websites and Apps of premium publishers.

The UK company provides advertisers access to an international audience of 438 million devices per month through its partnerships with over 300 premium publishers of business and finance content, including blue-chip names such as Reuters, Bloomberg, and WSJ.

58.8% growth

Last year, the company witnessed revenue growth by 58.8% over FY19 to £28.4 million and operating profit grew from £0.3 million to £2.0 million. The company has offices in London, New York, and Sydney.

Rupert Hodson, Chief Executive Officer of Dianomi, said: “We believed when we founded Dianomi that digital advertising spend would surpass print. This has proved to be true and in the last four years, digital advertising has truly taken off, particularly in our core financial market, and is predicted in the US to reach $23.6 billion in 2021, an increase of over 100% from 2017.

“Consumers have now 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. Today’s IPO is therefore intended to help accelerate our ability to take advantage of these opportunities.”

Matthew Singh, an Investor at BGF who sits on the board of Dianomi, said: “This is a significant milestone for BGF. Since we backed Dianomi in 2018, the Company has performed extremely well, growing profitably and demonstrating a strong network effect that has seen it win strategic relationships and continue to build its roster of tier-one publishers and advertisers.

“The acceleration in performance we saw through the Covid period has persisted, with the digital marketing backdrop buoyant as consumption of online content has grown and advertising budgets have shifted to digital channels. Unaudited revenue in Q1 of the current financial year was 49.7%. ahead of the same period in the prior year, demonstrating the growth momentum of the business.”