The London stock market has become a hotbed for UK tech companies looking to float their businesses in the past year. Dianomi, a digital advertising firm, is the most recent to join this trend after announcing its intention to list on London’s junior AIM market.
Here is everything you need to know about Dianomi’s planned IPO, including whether you can buy shares in the company.
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What is Dianomi?
Dianomi provides digital advertising services to premium clients in the financial services and business sectors.
It enables brands to deliver native advertisements to a targeted audience across the desktop and mobile websites and apps of premium news content publishers like Bloomberg, Reuters, and The Wall Street Journal.
The company began trading in 2003 and currently operates from offices in London, New York and Sydney.
Clients of the company 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 banks in the US.
According to the company, these clients get access to a global audience of 438 million devices per month through its partnership with more than 300 premium publishers of business and finance content.
Dianomi has quite a strong record of growing revenue and profit. In 2020, revenue was £28.43 million, a 58.8% increase over 2019. Earnings before interest and tax were about £2.02 million in 2020, up from £0.25 million in 2019.
The company is targeting a £67 million to £76 million valuation from the IPO, according to The Times. It plans to use a portion of the proceeds to expand its sales and marketing capabilities.
When is Dianomi floating its shares?
The IPO is set to take place before the end of May 2021. However, no specific date has yet been provided.
How can I buy shares?
Once Dianomi is officially listed on the AIM market, investors will be able to buy shares in the same way as they would in any other public company.
All you need is a share dealing account. We’ve compared some of the top-rated providers of share dealing accounts to help you narrow down your choices.
Investors can also invest in Dianomi through a stocks and shares ISA. This is a tax-free wrapper that protects your investment from both income tax and capital gains tax.
Keep in mind, however, that tax rules can change and their effects on you will depend on your individual circumstances
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Should I buy Dianomi’s shares?
This is a decision that is yours alone. But overall, there are several things to like about Dianomi from an investment standpoint.
The company has a strong track record of growing revenue and profit. Over the last five years, Dianomi has grown revenue at a compound annual growth rate of 47.4%.
Another plus is its impressive clientele. Dianomi works with some of the largest firms in the financial services and business sectors. This shows that it is a trusted entity in a growing market, as more consumers switch from print to digital.
The company’s differentiated service offering and its focus on the premium segment of the market set it apart from competitors.
Further, the company is well positioned to deal with any future regulatory changes and privacy enhancements. That’s because, unlike other digital advertisers, Dianomi uses contextual advertising, which does not rely on third-party cookies to target online ads. Third-party cookies, which many other digital advertisers use, may be subject to future regulatory changes aimed at protecting customer privacy.
However, there is one potential source of concern for investors. Dianomi generates more than three-quarters of its revenue in the Americas. When a firm generates most of its revenue in one geographic region, it is vulnerable to many of the risks that the region may present.
Government regulations, economic downturns and other such events can jeopardise a company’s profits in a more severe way than companies with more diverse revenue sources.
Before you part with your cash and invest in the company, make sure you’ve considered all of these factors and thought about how how the investment fits into your overall investment strategy.
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