Yandex will place its shares on the Moscow Exchange
According to Kommersant, today it will be announced that Yandex’s securities will begin circulation on the Moscow Stock Exchange. According to journalists, on June 3, on Tuesday, shares of class A. search engine will be admitted to trading on the exchange. Sources in the Internet industry, including those familiar with Arkady Volozh’s plans, confirmed this information to Kommersant. The press service of Yandex also did not refute the information on entering the Russian stock exchange:
Tomorrow a solemn event will be held at the Moscow Stock Exchange with the participation of Arkady Volozh, CEO of Yandex, and Alexander Afanasyev, Chairman of the Board of the Moscow Stock Exchange. We invite journalists to this event.
Bidding will begin June 4 under the ticker YNDX and will be carried out in Russian rubles.
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Yandex and Exchange
Yandex is the largest Russian Internet company. In May 2011, the search engine conducted an IPO on the American NASDAQ exchange, during which shares were placed for $ 1.3 billion, and the entire company was valued at $ 8 billion. The cost of class A shares was $ 25 per share. The IPO was organized by such famous companies as Morgan Stanley, Deutsche Bank and Goldman Sachs. Currently, over 70% of Yandex shares are trading on NASDAQ (244.2 million shares have been issued for free circulation), and its current capitalization is about $ 10 billion. On Friday, May 30, the company's securities closed at the US stock exchange at $ 31.14 .
Not always things “Yandex” on the exchange went smoothly. So in April 2014, the share price fell after the start of trading by as much as 11.53% - to $ 23.6 per share. The reason for the panic of investors was the statements of President Vladimir Putin, who called Yandex a project with Western influence, mentioning that Russia should protect the information of state organizations and citizens by placing it on servers within the country.
When they [Yandex] were just starting work, they were also crushed: there must be so many Americans, so many Europeans, and they had to agree with that.
Everything that happened allowed observers to assume that there was a possibility of selling the company - in a similar vein, in particular, Alexey Venediktov, editor-in-chief of Ekho Moskvy, spoke in a TJournal interview.
Information that Yandex is planning to enter the Russian stock exchange first appeared in early 2014 - in February, during a conference call to discuss 2013 financial results with investors, Greg, Vice President for Corporate Governance and Investor Relations. Abovski said that "having considered the issue of placing the company's shares on the Moscow Stock Exchange, the board of directors generally supports this idea."
Earlier, another Russian Internet company, Mail.ru Group, reported that its board of directors also approved the placement of shares on the Moscow Stock Exchange.
To think about the beginning of listing in Russia, domestic companies currently bargaining in London and New York in April 2014 were urged by First Deputy Prime Minister Igor Shuvalov, who said that “the government cannot force anyone, but wants to convey its point of view.” According to the official, the placement of shares on domestic stock exchanges is a "matter of economic security."
On Monday, a representative of the secretariat Shuvalov did not comment on the release of “Yandex” on the Moscow Stock Exchange, but noted that what the First Deputy Prime Minister spoke about in the spring “begins to translate into a real economic fact.”
However, the desire to satisfy the requests of the authorities may not be the only reason for entering the Moscow Stock Exchange (there are also suggestions that trading on Russian sites may protect their business from the imposition of sanctions by the United States). This is indicated by some financial market experts. In particular, in a conversation with Gazeta.ru, one of the analysts of a large financial organization called another possible goal of Yandex:
One of the possible reasons for the search engine entering the Russian market may be the company's desire to get into the MSCI Russia index. However, for this, the company needs to conduct a successful placement on the Moscow Stock Exchange. [...] Technically, the company may issue a small amount of securities on the Moscow Stock Exchange, and then introduce free conversion of securities traded on the Moscow Exchange and NASDAQ. In the future, such a model will attract not only institutional investors, but also allow private investors who do not have access to trading on the NASDAQ to trade shares of the company
The MSCI Russia index serves as a guideline for many international investors who invest in Russian assets. The calculation of the MSCI index takes into account three main parameters: the company's capitalization, trading volume and the level of free float.
As for the Moscow Stock Exchange, the stock market is the largest stock market of the CIS countries, Eastern and Central Europe, and CJSC MICEX Stock Exchange, which organizes trading on the Moscow Exchange stock market, is among the top 30 leading stock exchanges in the world.
PS You can read more about the stock market of the Moscow Exchange and the procedure for calculating it here - later this topic will be covered in more detail in the ITinvest blog.
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Source: https://habr.com/ru/post/224991/
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