Yandex (ticker: YNDX) is on the top of IPO list

Yandex (ticker: YNDX) is on the top of IPO list

May 24th - Yandex, Russia's largest search engine and one of the most expensive non-resource companies from Russia, held a public offering of shares on the American Stock Exchange Nasdaq. Placing came unexpected both for the "Yandex", and for investors: The Russian company has managed the day before the IPO to increase the range of the value of its shares.

The first time to hold IPO became known in 2008. Because of the crisis "Yandex" has decided to wait, and as it turned out in 2011, has not lost: its IPO can be called one of the most successful debuts of Russian companies in international markets.

Originally, "Yandex" planned to earn from selling shares of a billion dollars. However, because of the fact that the company IPO rumors about long time no comment, the press appear different guesses. Thus, in the UK wrote that "Yandex" wants to attract billions, but not dollars and pounds sterling. There was a lot of arguing about the timing of placement - in September 2010, "RBC daily" citing anonymous sources wrote that the deployment will take place no earlier than the second half of 2011.

Officially, IPO "Yandex" was announced in late April. Time, it seemed, was not chosen very well: in mid-May, was scheduled stock offering business social network Linkedln. This could reduce investor interest in Russian companies: even though Linkedln and Yandex do different things, but they both fall under the definition of "internet company".

Linkedln IPO was more than successful: the network shares were sold at the upper boundary of the set price range, which, incidentally, a few days before the deployment was extended, the company has managed to attract 352.8 million. Its capitalization was after IPO 4,25 billion, but the next day more than doubled - the demand for shares Linkedln surpassed all expectations.

"Hi guys! There is everything"
It is these words greeted traders on the Nasdaq and the head of one of the shareholders of Yandex Arcady Volozh May 24. He was charged with grand opening of trading - the right to possess these managers are particularly valuable for listed companies. Judging by how briskly investors began selling shares of Yandex, they liked the Volozh's speech.

Before the cheers, after which the managers of "Yandex" has finally could relax, the company's management had engaged in a few weeks rather nervous work: look for the primary investors, and expect a "fair" value of its securities.

Initially, the price range for shares of "Yandex" has been declared at the level of 20-22 dollars per share. But just before the IPO showed that bid book was oversubscribed several times, and the investors agreed to buy securities, even more expensive than the upper limit of the announced range.


This gave the opportunity to "Yandex" increase the range to 24-25 dollars, and then place the securities for $25. Total investors purchased more than 52 million shares, allowing Yandex to attract more than 1.3 billion dollars. For the money search engine gave 16.3 per cent of the share capital. More than 100 million U.S. company can receive from the organizers of the IPO - they have the right to repurchase 5.2 million shares at $25.

Immediately after the phrase Volozh "Hi guys! Find all the" action "Yandex" began to grow rapidly in price. During the first hour of trading, they rose 40 percent, and for the whole day - more than 55 percent. By the end of trading on May 24 "Yandex" has been evaluated in more than 12 billion dollars, and one share stake was worth almost $39.

Yandex and Google
The day before the IPO "Yandex" on the Russian Internet has been widely discussed article in Bloomberg, which journalists have estimated that the domestic search engine has outstripped the U.S. in terms of P/E (ratio of market value to net income).


After the IPO, the journalists appeared another reason to compare the two Internet companies: the volume of IPO "Yandex" has become the second largest in the world after the IPO Google in 2004. Then the American search engine attracted 1.67 billion dollars.

In addition, Yandex has overtaken Google in the growth of quotations the first trading day: an American company the day after the placement has risen only 18 percent.

True, all this capitalization of Yandex and Google is not comparable: the American company is worth on the market more than 167 billion dollars. But it is unlikely in the Russian search engine thought seriously compete with Google; stand with it in a series - already an honor.

On the exchanges at various times traded four Russian Internet company: RBC, "Rambler", Mail.Ru Group and Yandex.
RBC is still traded on Russian exchanges, however, deal in shares of media companies are not very often. According to RTS, the company's capitalization is 184 million dollars and has not changed since May 16.

"Rambler" had its IPO in 2005 on the London Stock Exchange. The sum of accommodation was 40 million dollars at that time. Four years later "Rambler" had Delisting: One of the biggest Russian search engine was absorbed Prof-Media."

Finally, Mail.Ru Group, which combines portal Mail.Ru, social networks Odnoklassniki.ru "and facebook, and instant messenger ICQ and other assets, entered the market in late 2010. Mail.Ru sold about 17 per cent stake, to gain for them a little less than a billion dollars. During the first day of trading the company's shares rose 29 percent.

Mail.Ru, ahead of "Yandex" with access to the stock exchange, has managed to assemble investors who had expressed an interest in securities of Russian Internet companies, but have not been able to acquire them. After the IPO "Yandex", investors appeared choice, and what an asset they will invest more remains to be seen: May 24, Mail.Ru shares fell in London for more than five percent.

So now Mail.Ru and Yandex will fight not only for Russian Internet users, but also for investors around the world.