Yandex, the “Google of Russia”, is going public and is pricing its stock above range at $25 million. The IPO is selling $1.3 billion of stock, with $920 million going to shareholders’ pockets.
Clearly, investor appetite for high growth internet stocks is high. LinkedIn also priced above range when it went public, and then popped over 100%.
Yandex is the most popular search engine in Russia, and owning a popular search engine in a big emerging market is obviously an attractive proposition for investors.
Yandex seems to be a strong company but of course whenever a tech IPO does well someone will cry bubble. More worrisome for investors should be the fact that Yandex warned in its IPO prospectus that Kremlin insiders just might steal the company.