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Yandex raised $1.3bn in Nasdaq debut
Yandex raised $1.3bn in Nasdaq debut
By: iMedia News Bureau
Another new Internet IPO got a soaring reception from investors on Tuesday. Shares of Yandex NV, known as "Russia's Google", rose 55 per cent in their trading debut at the Nasdaq MarketSite

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 Another new Internet IPO got a soaring reception from investors on Tuesday. Shares of Yandex NV, known as "Russia's Google", rose 55 per cent in their trading debut at the Nasdaq MarketSite, in New York. Arkady Volozh, CEO of Yandex, celebrates the high of initial public offering.

 
The IPO comes a week after professional social networking company LinkedIn went public. Investors more than doubled that company's stock price on its first day of trade. Yandex rose $US1.3 billion ($1.2b) in its IPO.
 
The company, founded in 1997 sold 15.4 million shares in its IPO while some of its private shareholders sold 36.8 million. The total of 52.2 million shares raised $1.3 billion in all, making the deal the biggest tech IPO in 2011.
 
Yandex's business model is driven by online advertising. In 2010, profit rose 90 per cent to 3.8 billion rubles ($127 million) on sales that grew by 43 per cent to 12.5 billion rubles ($417 million). Its market share in Russian search is now at 65 per cent against Google's 22 per cent because of its competitive advantage over Google as it is better equipped to handle the grammatical complexities of the Russian language. Yandex will surely benefit from the growth of Russian online advertising.
 
The Russian search giant faces normal risks that any young company would do but Russia’s economy has a great growth potential, and that is drawing investors to Yandex.  Few other risks involve the pressure from Political parties. The time will only tell that how the circumstances remain ever positive.
 
Here’s wishing luck to Yandex, whose IPO unveiling reinforced that internet companies are sizzling over again.
 
Tags: Yandex NV,  Russia's Google, Arkady Volozh, LinkedIn, tech IPO, online advertising, Russian