Yandex shares rocket more than 50% in latest tech IPO craze
Yandex (NASDAQ:YNDX) shares surged on Tuesday as the Russian internet search engine completed the biggest IPO since Google in 2004.
The company made its debut on the Nasdaq under the trading symbol "YNDX", raising $1.3 billion by selling 52.2 million shares, or a 16.2% stake, at $25 each, way above the proposed range of between $20 to $22.
The initial listing values the company at about $8 billion, Yandex said in a statement, and represents the biggest technology IPO in 2011 globally. Yandex shares rose more than 50% as of 2:45pm EST on Tuesday, to trade at $37.71.
The move by Yandex follows last week's LinkedIn craze, which saw the professional social network company's shares more than double in price on the first day of trading. Investors were also swayed by Yandex's prospects due the growing internet market in Russia.
Based on the middle of the initial pricing range at $21, Yandex had planned to sell its shares at price that was 23 times its forecast earnings next year.
Under the terms of the offering, the company sold 15.4 million shares, while some investors, including Baring Vostok Capital Partners and Tiger Global Management, offered up 36.8 million shares. Yandex also gave underwriters an over-allotment option to purchase an additional 5.2 million shares.
According to reports, CEO Arkady Volozh said in an interview that his company is "better than Google", with plans to expand beyond Russia.
Proceeds from the sale will be invested in infrastructure and technology, as well as possible acquisitions.
Morgan Stanley, Deutsche Bank and Goldman Sachs led the offering.
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