AAA Adtech company TubeMogul raises $43.7m in IPO

Adtech company TubeMogul raises $43.7m in IPO

TubeMogul, a US-based provider of digital branding software backed by telecommunications firm SingTel, raised $43.75m in an initial public offering on Friday after it floated at the bottom of its range.

The company filed for a $75m IPO in March, only to slash the target to $50m when it set a range of $7-$8 the day before it went public. It sold 6.25 million shares priced at $7.00 each through the offering.

SingTel invested $10m in TubeMogul, which has raised $45m in equity funding, in May 2013 through corporate venturing subsidiary SingTel Innov8 but retains a stake sized at less than 5%.

Trinity Ventures remains TubeMogul’s largest shareholder with a 20.5% stake, while fellow venture firms Foundation Capital and Northgate Capital hold shares sized at 17.5% and 6.2% respectively.

However, TubeMogul’s shares popped when the Nasdaq opened on Friday, opening at $8.50 and closing at $11.50. They are priced at $10.29 at time of publication.

BofA Merrill Lynch, Citigroup and RBC Capital Markets are the joint book-running managers for the offering, while the co-managers are BMO Capital Markets and Oppenheimer & Co.

The underwriters have the 30-day option to buy a further 937,000 shares, which would increase the size of the IPO to just over $50m.

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