S4 Capital PLC Issue of Shares (0152E)

TIDMSFOR

RNS Number : 0152E

S4 Capital PLC

03 November 2020

3 November 2020

S4 Capital plc ("S(4) Capital" or the "Company")

Issue of Shares

On 29 July 2020, S(4) Capital plc (SFOR.L) announced a merger of its data and programmatic media practice MightyHive with Orca Pacific, a market leading full-service Amazon agency and boutique consultancy firm based out of Seattle (the "Transaction"). Pursuant to the terms of the Transaction, the Company has agreed to issue 594,633 ordinary shares of 25 pence each in the capital of the Company, credited as fully paid, as consideration (the "Consideration Shares"). The Consideration Shares will be subject to a restriction on sale until 4 November 2022.

Applications have been made to the FCA and to the London Stock Exchange for the Consideration Shares to be admitted to the standard segment of the Official List of the FCA and to trading on the London Stock Exchange's Main Market for listed securities respectively ("Admission"). It is expected that Admission will become effective at 8.00 a.m. on 4 November 2020.

S(4) Capital plc

Sir Martin Sorrell, Executive Chairman

Powerscourt (PR Advisor) Tel: [phone]

Elly Williamson

Jessica Hodgson

About S (4) Capital

S(4) Capital plc (SFOR.L) is the tech-led, new age, new era digital advertising and marketing services company, established by Sir Martin Sorrell in May 2018.

Its strategy is to build a purely digital advertising and marketing services business for global, multinational, regional, local clients and millennial-driven influencer brands. This will be achieved initially by integrating leading businesses in three practice areas: first-party data, digital content, digital media planning and buying, along with an emphasis on "faster, better, cheaper" executions in an always-on consumer-led environment, with a unitary structure.

Digital is by far the fastest-growing segment of the advertising market. S(4) Capital estimates that in 2019 digital accounted for approximately 47.5% or $275 billion of total global advertising spend of $550-600 billion (excluding about $400 billion of trade support, the primary target of the Amazon advertising platform), and projects that by 2022 this share will grow to approximately 55-60%.

S(4) Capital combined with MediaMonks, the leading AdAge A-listed creative digital content production company led by Victor Knaap and Wesley ter Haar, in July 2018, and with MightyHive, the market-leading programmatic solutions provider for future thinking marketers and agencies, led by Peter Kim and Christopher S. Martin, in December 2018.

In April 2019, MightyHive merged with ProgMedia to expand operations into Latin America and MediaMonks acquired film studio Caramel Pictures to expand content studio capabilities. In June 2019, MediaMonks announced a planned merger with Australia-based BizTech, a leading marketing transformation and customer experience company. In August 2019, MediaMonks merged with Amsterdam-based digital influencer marketing agency IMA. In October 2019, MediaMonks merged with Firewood Marketing, the largest digital marketing agency based in Silicon Valley, that was recently ranked, along with MediaMonks, as one of the fastest growing agencies by Adweek, and MightyHive merged with award-winning UK-based digital analytics, biddable media and data science company ConversionWorks and South Korea-based data and analytics consultancy MightyHive Korea. In November 2019, MediaMonks announced its merger with Delhi-based content creation and production company WhiteBalance and then with fully integrated digital agency Circus Marketing in January 2020.

In May, MightyHive announced a merger with Digodat, one of the leading Latin American data and analytics consultancies, and in June 2020, MightyHive announced its merger with Lens10, a leading Australian digital strategy and analytics consultancy. In July 2020, MightyHive merged with Orca Pacific, a market leading full-service Amazon agency and boutique consultancy firm based out of Seattle. In August 2020, MightyHive announced a combination with London-based Brightblue, an econometric and media optimisation consultancy. In September 2020, MediaMonks announced its combination with Dare.Win, expanding their geographical presence to France.

On 2 October 2020 S(4) Capital announced the successful placing of 1,008,373 new ordinary shares at a price of 25p raising approximately GBP0.25m gross proceeds which will be used for further expansion and M&A purposes.

Victor, Wesley, Pete, Christopher and Peter Rademaker (formerly Chief Financial Officer of MediaMonks, now Chief Financial Officer of S4Capital), all joined the S(4) Capital Board as Directors. The S(4) Capital Board also includes Rupert Faure Walker, Paul Roy, Daniel Pinto, Sue Prevezer, Elizabeth Buchanan, Scott Spirit, Naoko Okumoto, Margaret Ma Connolly and Miles Young.

The Company has 2,650 people in 30 countries across the Americas, Europe, the Middle East and Africa and Asia-Pacific and a market capitalisation of approximately GBP2.1 billion (c.$2.71 billion), and would rank well into the FTSE 250. It has achieved Unicorn status in a little over one year, unique in the advertising and marketing services industry.

Sir Martin was CEO of WPP for 33 years, building it from a GBP1 million "shell" company in 1985 into the world's largest advertising and marketing services company with a market capitalisation of over GBP16 billion on the day he left. Today its market capitalisation is GBP7.5 billion. Prior to that Sir Martin was Group Financial Director of Saatchi & Saatchi Company plc for nine years.

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November 03, 2020 02:00 ET (07:00 GMT)