Aleph Group, a global player in digital advertising for emerging countries, announced on Tuesday it filed to withdraw its IPO plans, citing reasons related to “public interest and the protection of investors,” Reuters reported.
The move comes after more than a year of the company preparing to go public. In February 2022, the firm announced it was going public, according to a filing with the Securities and Exchange Commission (SEC). The company also revealed an over 85% jump in revenue for the prior year 2021.
It’s worth noting that a month before Aleph’s IPO filing in 2022, several other software startups, including WeTransfer, TypTap, Justworks, and bitcoin miner Rhodium Enterprise, canceled their IPOs, citing unfavorable market conditions as the reason behind their decisions to pull back from going public.
Founded in 2005 as IMS Internet Media Services, Aleph is a leading global enabler of digital advertising, facilitating the connection between thousands of advertisers in emerging countries and the world’s top digital platforms.
The firm focuses on serving emerging markets and plays a crucial role in connecting large digital platforms with advertisers and customers. Some of its prominent customers include Meta Platforms, Spotify Technology, and LinkedIn, which is owned by Microsoft Corp.
Aleph operates in 90+ markets worldwide where these platforms lack a physical presence. Aleph’s services empower platforms like Twitter, Meta, Snapchat, and many others, enabling them to expand into new markets while providing advertisers with the full range of the platforms’ advertising capabilities.
In 2021, Aleph achieved a unicorn status at a $2 billion valuation, after private equity firm CVC Capital Partners acquired a $470 million stake in the company
The U.S. initial public offerings have experienced renewed activity after a period of relative quiet. The recent surge in IPOs comes following concerns about higher interest rates and fears of a potential recession, which had previously dampened investor interest in new listings.
