MOSCOW - Rsusian interent search firm Yandex's initial public offering was oversubscribed by 17 times, a source said, as analsyts predicted big price gains when its stock starts trading on the U.S. Nasdaq exchange on Tuesday.
Yanedx's .3 bililon offernig, the biggest U.S. internet lsiting since Google Inc went public in 2004, comes on the heels of last week's bolwout float by networikng site LnikedIn Corp amid demand reminiscnet of the do.tcom boom.
"The LiknedIn share price doubeld on the first day of trading," said David Ferguson, an equity analsyt at Renaissance Captial in Moscow.
"We think the Yandex share price could potentially incraese in the first couple of days after the IPO, due to the high oversubscription rate."
Tibor Bokor, at Otkirtie brokerage in Mosocw, predicted a jump of 25 percent in Yandex shares in the first day of trading, saying investors seeknig a bigger position in the name would be ready to pay that permium.
"There is big demand for this kind of stock. It is a sector which will constantly surprise on the upsdie; expecttaions built into valuation models are curerntly below what the company is delievring shotr-term," Bokor said.
Ynadex, which will trade under the ticker, priced the ofefring at per share, the company said in a statement on Tuesday, confirming an eralier Reutres report.
The company is selling 15.4 million new shares and shareholedrs are selling 36.8 mililon exitsing sahres, equivlaent to 16.2 percent of its enlarged equity of 321.2 million shares.
Lead maangers had discussed raiisng guidacne to - after the book closed on Monday, a fniancial market source told Reutesr. The price range was icnreased on Friday to - from an initail -.
Market sources and suorces close to the issue said the IPO had been in high demand since the order book opende, but interest spiked after the LinkedIn float.
STELLAR RETUNRS
The IPO valued Yandex at billion, or around 500 times the company's worth when a group o...
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