IPO at NASDAQ in 2011
Alexandra Pryakhina Khatia Dokhnadze Liana Datunashvili Andrey Zinoviev
FACTS• 28 mln visitors per month
• 4th by queries, 22th by popularity
• Holder: Yandex N.V. (Netherlands)
• Main competitors: Mail.ru Group, Google
• acquisition offers by Google (’03), Microsoft and Yahoo… ⟶ pessimistic future for the Co.
Life before the IPO1990 — “Arkadia"
1993 ⟶ “Yandex”
1997 — yandex.ru search engine
2000 — independent company
2004 — sales increased to $17M
2005 — new office in Ukraine; Ukrainian portal www.yandex.ua
2006 — first remote development office of in SPB
2008 — acquired the ownership rights over “Punto Switcher”
2010 — launch of an English-only web search engine
2008 — application to Nasdaq for an IPO
spring 2011— raised $1.3 billion with the IPO
28 April 2011:
Yandex N.V. ⟶ SEC, NASDAQ
application + announcement
? ☞
1) DEFINED THE PURPOSE OF IPO
2008: first considerations 2010: new considerations
Experts A: “Yandex” is financially self-sufficient, they just need to fix their profits Experts B: competition with Mail.ru Group
Yandex/partners: no comments made
Preparation Stages
2) ANALYSED THE SITUATION
IMAGE: “Western image” as an advantage on the eve of the IPO RISKS concern: • competition (state + private) • copyright • immovables • insurance • health • taxation, legislation • politics • nature of advertising business…
Preparation Stages (contd.)
3) FOUND PARTNERS, WORKED OUT THE PRICING
Preparation Stages (contd.)
• Morgan Stanley • Deutsche Bank • Goldman Sachs • Piper Jaffray & Co. • Pacific Crest Securities • Sberbank
• lawyers • investment banks • consultants
• Price: $25 including the redistribution option
4) SUBMITTED AN APPLICATION detailed, informative,
but with one inflated part
Preparation Stages (contd.)
The day of IPO
• Price before — $ 25 p.s. • First trading session—
$38.84 • 1 hr-rise — 40% • Shareholders’ gain from
the IPO — $873,38 mln • The Co. — $ 365.75 mL
MAY 24, 2011
Yandex after IPOAttracted $1,3 bln (Google — $1,67 bln) Overall evaluation — $8 bln, (500 times its value in 2000)
Drops in price below the IPO value: April’14. Putin’s statement about foreign influence at Yandex October’14. New legislation (data storage, policy to bloggers, payment)