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Israeli content recommendation company Outbrain has announced that it has set the terms for its IPO on Nasdaq. The company has reported that it will issue eight million shares at $24-$26 per share for a raise of $192-$208 million. Outbrain has also published preliminary results for the second quarter of 2021, which showed a major jump in net profit, Trend reports with reference to Globes.

The underwriters have also been given 30 days to exercise options to buy shares worth $28.8-$31.2 million within 30 days at the IPO price.

The IPO will thus be at a company valuation of between $1.3 billion and $1.4 billion, slightly lower than previously expected.

In the second quarter of 2021, Outbrain expects revenue of $243-$247 million, up 55% from $158 million in the corresponding quarter of 2020. Net profit in the second quarter is $13.6-$15.2 million compared with $2.6 million in the corresponding quarter of 2020.

In the first quarter of 2021 the company reported revenue of $228 million, up from $177 million in the corresponding quarter of 2020. Outbrain also swung from a loss to a $10.7 million net profit in the first quarter of 2021.

Last week, Outbrain raised $200 million from Seth Klarman’s hedge fund Baupost, at an unreported valuation. The company’s previous financing round before that was in 2016 at a company valuation of $650 million. Baupost has told Outbrain that it now intends buying 9.9% of the shares being issued, which will be for about $20 million, although it has no binding contract to do so.

Outbrain’s other shareholders include Lightspeed, Viola, Gemini, Index Ventures, Gruner + Jahr, and founder and co-CEO Yaron Galai who holds a 7.8% stake, which will be worth about $88 million after the IPO. Co-CEO David Kostman holds share worth about $29 million.

CitiGroup, Jefferies, Barclays, JMP Securities, Evercore Group, Needham and LUMA Securities are acting as underwriters.