Direct Digital Holdings, which provides an end-to-end programmatic advertising platform to SMBs, raised $15 million by offering 2.8 million units at $5.50, the low end of the downwardly revised range of $5.50 to $7.50. Each unit consists of one share of Class A common stock and one warrant, exercisable at the IPO price. The company offered 50k more units than anticipated. It revised terms twice ahead of pricing, originally planning to offer 4 million shares at a range of $7 to $9.
Because the offering contained warrants, Direct Digital Holdings will be excluded from Renaissance Capital's stats.
Formed in 2018 through its acquisitions of Huddled Masses and Colossus Media, Direct Digital Holdings is an end-to-end, full-service programmatic advertising platform focused on underserved and less efficient markets on both the buy- and sell-side of digital advertising. Targeting SMBs, the buy-side component of its business is comprised of Huddled Masses and Orange142 (acquired in 2020), which serves hundreds of clients with more than 4,000 campaigns annually by leveraging insights from leading demand side platforms (DSPs). Colossus Media is its proprietary sell-side programmatic platform, which served over 39,386 clients in September 2021.
Direct Digital Holdings plans to list on the Nasdaq under the symbol DRCT. The Benchmark Company and Roth Capital acted as joint bookrunners on the deal.
