Russia's Yandex raises $1.3 billion in IPO
#1
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Russia's Yandex raises $1.3 billion in IPO
The Russian Google goes IPO
Anyone getting in?
http://www.forbes.com/feeds/ap/2011/...g_8482051.html
Anyone getting in?
http://www.forbes.com/feeds/ap/2011/...g_8482051.html
On the heels of LinkedIn's huge first-day pop, Russian search engine Yandex NV priced its initial public offering above expectations Monday night, raising $1.3 billion.
That's the most raised by an Internet company in the U.S. since Google Inc. ( GOOG - news - people ) went public in 2004, according to IPO research and investment fund Renaissance Capital.
The deal gives Yandex a market value of $8 billion before trading begins.
Yandex is Russia's most-visited website. It generated 65 percent of Russia's Internet search traffic in the first three months of the year. Google's share was 22 percent.
That's the most raised by an Internet company in the U.S. since Google Inc. ( GOOG - news - people ) went public in 2004, according to IPO research and investment fund Renaissance Capital.
The deal gives Yandex a market value of $8 billion before trading begins.
Yandex is Russia's most-visited website. It generated 65 percent of Russia's Internet search traffic in the first three months of the year. Google's share was 22 percent.
Yandex stock is expected to trade on the Nasdaq Tuesday under the symbol "YNDX."
#2
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Yandex IPO Oversubscribed 17 Times
http://www.cnbc.com/id/43151309
http://www.cnbc.com/id/43151309
Russian internet search firm Yandex's initial public offering was oversubscribed by 17 times, a source said, as analysts predicted big price gains when its stock starts trading on the U.S. Nasdaq exchange on Tuesday.
Yandex's [YNDX 25.00 --- UNCH ] $1.3 billion offering, the biggest U.S. internet listing since Google [GOOG 522.40 4.01 (+0.77%) ] went public in 2004, comes on the heels of last week's blowout float by networking site LinkedIn [LNKD 88.38 0.08 (+0.09%) ] amid demand reminiscent of the dot.com boom.
"The LinkedIn share price doubled on the first day of trading," said David Ferguson, an equity analyst at Renaissance Capital in Moscow. "We think the Yandex share price could potentially increase in the first couple of days after the IPO, due to the high oversubscription rate."
Tibor Bokor, at Otkritie brokerage in Moscow, predicted a jump of 25 percent in Yandex shares in the first day of trading, saying investors seeking a bigger position in the name would be ready to pay that premium.
"There is big demand for this kind of stock. It is a sector which will constantly surprise on the upside; expectations built into valuation models are currently below what the company is delivering short-term," Bokor said.
Yandex, which will trade under the ticker, priced the offering at $25 per share, the company said in a statement on Tuesday, confirming an earlier Reuters report. The stock is scheduled to open at 10:25 am ET, according to the Nasdaq. Trading usually starts 10 to 15 minutes following the open.
The company is selling 15.4 million new shares and shareholders are selling 36.8 million existing shares, equivalent to 16.2 percent of its enlarged equity of 321.2 million shares.
Lead managers had discussed raising guidance to $26-$27 after the book closed on Monday, a financial market source told Reuters. The price range was increased on Friday to $24-$25 from an initial $20-$22.
Market sources and sources close to the issue said the IPO had been in high demand since the order book opened, but interest spiked after the LinkedIn float.
Stellar Returns
The IPO valued Yandex at $8 billion, or around 500 times the company's worth when a group of private-equity investors led by Baring Vostok Capital Partners bought a 36 percent stake for just over $5 million in 2000.
Unlike social-networking sites like LinkedIn, Yandex's business model, driven by online advertising, has generated strong growth in earnings, which rose by 90 percent to $135 million last year.
Analysts and investors say, however, that the Yandex deal does set a demanding valuation at 18 times 2010 sales compared with Google's multiple of six.
For the company to deliver on its growth proposition it will have to defend its market share in Russian search, now at 65 percent against Google's 22 percent.
Analysts say that the search engine devised by co-founders Arkady Volozh and Ilya Segalovich, regarded as better equipped to handle the grammatical complexities of the Russian language than Google's, will remain a vital competitive advantage.
"Yandex has a proper track record and a business model that investors understand," said Anna Lepetukhina, analyst at Troika Dialog in Moscow.
"It's the same as Google. It's a company that generates cash. And Google in Russia can't become Yandex."
Yandex's [YNDX 25.00 --- UNCH ] $1.3 billion offering, the biggest U.S. internet listing since Google [GOOG 522.40 4.01 (+0.77%) ] went public in 2004, comes on the heels of last week's blowout float by networking site LinkedIn [LNKD 88.38 0.08 (+0.09%) ] amid demand reminiscent of the dot.com boom.
"The LinkedIn share price doubled on the first day of trading," said David Ferguson, an equity analyst at Renaissance Capital in Moscow. "We think the Yandex share price could potentially increase in the first couple of days after the IPO, due to the high oversubscription rate."
Tibor Bokor, at Otkritie brokerage in Moscow, predicted a jump of 25 percent in Yandex shares in the first day of trading, saying investors seeking a bigger position in the name would be ready to pay that premium.
"There is big demand for this kind of stock. It is a sector which will constantly surprise on the upside; expectations built into valuation models are currently below what the company is delivering short-term," Bokor said.
Yandex, which will trade under the ticker, priced the offering at $25 per share, the company said in a statement on Tuesday, confirming an earlier Reuters report. The stock is scheduled to open at 10:25 am ET, according to the Nasdaq. Trading usually starts 10 to 15 minutes following the open.
The company is selling 15.4 million new shares and shareholders are selling 36.8 million existing shares, equivalent to 16.2 percent of its enlarged equity of 321.2 million shares.
Lead managers had discussed raising guidance to $26-$27 after the book closed on Monday, a financial market source told Reuters. The price range was increased on Friday to $24-$25 from an initial $20-$22.
Market sources and sources close to the issue said the IPO had been in high demand since the order book opened, but interest spiked after the LinkedIn float.
Stellar Returns
The IPO valued Yandex at $8 billion, or around 500 times the company's worth when a group of private-equity investors led by Baring Vostok Capital Partners bought a 36 percent stake for just over $5 million in 2000.
Unlike social-networking sites like LinkedIn, Yandex's business model, driven by online advertising, has generated strong growth in earnings, which rose by 90 percent to $135 million last year.
Analysts and investors say, however, that the Yandex deal does set a demanding valuation at 18 times 2010 sales compared with Google's multiple of six.
For the company to deliver on its growth proposition it will have to defend its market share in Russian search, now at 65 percent against Google's 22 percent.
Analysts say that the search engine devised by co-founders Arkady Volozh and Ilya Segalovich, regarded as better equipped to handle the grammatical complexities of the Russian language than Google's, will remain a vital competitive advantage.
"Yandex has a proper track record and a business model that investors understand," said Anna Lepetukhina, analyst at Troika Dialog in Moscow.
"It's the same as Google. It's a company that generates cash. And Google in Russia can't become Yandex."
#3
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I bought 100 shares at $35. They look better than LinkedIn to me.
I'm pissed at TDAmertrade. I could have got it for around $30 but their damn system kept saying unknown symbol until it got to around $35.
I'm pissed at TDAmertrade. I could have got it for around $30 but their damn system kept saying unknown symbol until it got to around $35.
#4
Q('.')=O
iTrader: (1)
Sounds like it wasn't entered in their system yet or it wasn't trading on the secondary market yet
I dunno if TD Ameritrade participates in IPOs. Or TD Ameritrade sucks?
I dunno if TD Ameritrade participates in IPOs. Or TD Ameritrade sucks?
Last edited by imj0257; 05-24-2011 at 07:17 PM.
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