Yandex IPO at $25 a Share – The Russian Search Engine

52.2 million shares have been sold in the Yandex IPO. Yandex is a Russian search engine which was founded in 1997. Yandex is short for “Yet Another Index“.

The 52.2 million shares consist of 15.4 million new shares and 36.8 million shares from existing shareholders.

The IPO was oversubscribed by 17 times as the demand for leading tech stocks is rapidly rising again. This is leading to new concerns over the precarious tech stock bubble. It is only a week since LinkedIn floated in a record tech IPO.

As the shares start trading on the US Stock Exchange stock price increases are expected. Yandex IPO was $25. LinkedIn doubled on the first day of trading last week and as the Yandex IPO was so over subscribed it is expected that there will be an early rally today and continue to rise for a few days.

Yandex is now valued at $8 billion. It will be listing $1.3 billion of stock on the US Nasdaq exchange which means that it is the largest US internet listing since Google’s IPO in 2004.

Baring Vostok Capital Partners is a large investor in Yandex. They purchase 36% of the shares in 2000 for $5 million.

Yandex is very much like Google in that it provides a free Internet search engine and raises revenues through advertising products.

For English language searches Yandex currently offers Web search, Image search and Video search. Its homepage is very clean and minimalist much like Google.com.

Unlike Google though, Yandex utilizes technology to allow the grammatical complexities of the Russian language to be indexed. The core of of the engine is that it provides a “non-structured information with Russian morphology”.

In March 2007 Yandex took over moikrug.ru, a Russian social network which provides both professional and personal services.

In 2010 Yandex launched Yandex.Start program to help people find new business start-ups to aid economic growth in Russia.

In September 2010 Yandex launched Yandex.Music service which provides a searchable index of free and legal music.

Yandex also offers services such as Yandex.Money which provides electronic payments, Yandex.Traffic which provides the latest traffic news to aid navigation and Yandex.Images which not only indexes images but also allows you to find copies of any image to help fight plagiarism and copyright theft online.

Yandex is the default search engine in the Russian distribution of the Firefox web browser. Ir replaced Google as the default search engine in 2009.

It was founded by Arkady Volozh and Ilya Segalovich who have backgrounds in retrieval technologies and computer sciences. They were room-mates at college and both went on to work for CompTek International before building the Yandex search engine.

Website: www.yandex.com

  3 comments for “Yandex IPO at $25 a Share – The Russian Search Engine

  1. SHP
    May 24, 2011 at 11:47 pm

    Yandex finished trading today at $38.84 up +$13.84?, change of +55.36%?

    Not a bad start. Lets watch to see is Yandex can maintain this. If they do then it will indicate that there is plenty of room left for the bubble to expand further, and a rush by other tech firms to get in on the action.

    There will come a time when the tech stock investors will run out of cash, but at the moment pockets seem to be deep and confidence high.

  2. SHP
    May 24, 2011 at 8:30 pm

    Yandex does not look like it will be doubling in price on its first day like LinkedIn did, but it has shown a very healthy growth on its first day of trading on the NASDAQ:

    Price at 15:28 ET, $37.97, an increase of $12.97, 51.88% rise.

  3. SHP
    May 24, 2011 at 4:11 pm

    Yandex up to $35.87, increase of 43.8% already. – 16.11hrs UK time.

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