Entering text into the input field will update the search result below

HeadHunter Group Proposes Terms For $200 Million U.S. IPO

Apr. 29, 2019 4:36 PM ETHeadHunter Group PLC (HHR)3 Comments


  • HeadHunter Group has filed to raise $200 million in a U.S. IPO of its ADSs representing ordinary shares.
  • The firm operates an online employee recruiting and related services site for companies in Russia and CIS regions.
  • HHR is growing quickly, is profitable, and cash flow positive.
  • The IPO isn't cheap, so I'll be watching to see if there is a lower entry point post-IPO.
  • This idea was discussed in more depth with members of my private investing community, IPO Edge. Start your free trial today »

Quick Take

HeadHunter Group (NASDAQ:HHR) has filed to raise gross proceeds of $200 million from a U.S. IPO, according to an F-1/A registration statement.

The firm operates an online recruitment platform in Russia and the Commonwealth of Independent States [CIS].

HHR is growing sharply and is profitable and cash flow positive. Management is asking for a steep price at IPO. Perhaps a lower post-IPO price would entice me to become more interested.

Company & Technology

Nicosia, Cyprus-based HeadHunter was founded in 2000 to connect employers with employees in Russia and the CIS through its online recruitment platform.

Management is headed by CEO and Board Member Mikhail Zhukov, who has been with the firm since 2008 and was previously CEO at Helios Computer.

Below is a brief overview video of the company’s technology department:

Source: HHR

HHR has developed the HeadHunter online recruitment website that provides potential employers and recruiters with paid access to the company’s CV (resume) database which, for the year ended December 31st, 2018, consisted of 36.2 million total CVs.

For the same period, management claims its platform hosted 253,000 paying customers, an average of 559,000 job postings daily and, according to LiveInternet, 20 million unique visitors monthly.

The company has a specialized sales team located in Moscow, St. Petersburg and other regional offices that “cater to the specific type of customer, depending on their needs.”

The firm divides its prospective customer base into two buckets - Key Accounts, which have 250 or more employees, and Small and Medium Accounts which are smaller in size and annual revenue.

HHR generates revenue in the following manner:

  • Bundled subscriptions - 31.8% of revenue
  • Job Postings - 36.4%
  • CV Database Access - 23%
  • Other value-added services - 8.8%

The average revenue per customer decreased slightly in 2018 vs 2017, as shown

An enhanced version of this article on my Seeking Alpha Marketplace research service IPO Edge includes my full commentary and opinion on the IPO.

Members of IPO Edge get the latest IPO research, news, and industry analysis. Get started with a free trial!

This article was written by

Donovan Jones profile picture
Leader of IPO Edge
Get IPO Edge with actionable research on next-generation high growth stocks

I'm the founder of IPO Edge on Seeking Alpha, a research service for investors interested in IPOs on US markets. Subscribers receive access to my proprietary research, valuation, data, commentary, opinions, and chat on U.S. IPOs. Join now to get an insider's 'edge' on new issues coming to market, both before and after the IPO. Start with a 14-day Free Trial.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.