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Can Yandex be Another Baidu?

May 23, 2011 9:37 PM ETGOOG, BIDU, MSFT
RajRana profile picture
RajRana's Blog
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Yandex, first Russion IPO on nasdap since 2005 is biggest search engine in Russia raised it offering price to 24 to 25 today. The Company is planning to sell about 52 million shares as part of this offering, it would end up with total of about 320 million shares.

The company is expected to begin trading on Tuesday on the Nasdaq Global Select Market under the ticker ‘YNDX.”

Yandex operates mainly in Russia and generated about 64% traffic in Russia, which is close to Google's marketshare in US search and a little behind Baidu's China's marketshare.  Yandex operates in Belarus, Kazakhstan, Ukraine along with Russia.
It earned about 440 Million Revenue for 2010 with 0.44 EPS for the year.
For the First Quater of 2011, Yandex generated of 0.09 EPS on 137 million Revenue.

Considering it prices on the top range at 25 tonight or tommorrow morning, it will be priced at 57 times the earning on 2010. And Baidu is trading at 71.5 times earning as of today while Google with 20 times. Should Yandex trade at 31.50, it would be trading at about 71.5 times earning on 2010.

As of today, market demand have been high for Yandex shares, We shall find out tommorrow if we see other sizzling IPO like we had for Linkedin.

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