Russian IT company showing successful IPO on NASDAQ

RUSSIA / FSU POLITICS - In Brief 14 May 2019 by Alex Teddy
Russian IT company Headhunter completed an IPO at NASDAQ last week, showing successful early trading. No Russian company has achieved this since 2013. Headhunter has been assisted by a few US investment banks. Goldman Sachs, Morgan Stanley, Credit Suisse, Bank of America and Merrill Lynch are some of the banks involved. Over the last week the share price has gone up over 20%.Headhunter has benefited from not being a large company and its not targeted by sanctions. Forbes reported that Headhunter has offered 32% of its shares on the NASDAQ. The price range offered is USD 11-13.5 per share. If we go by the higher share price the company is worth USD 675 million - and current valuations since trading began higher than USD 830 million. The company is planning to raise USD 250 million through this IPO. The company has been talking about such a gambit since December 2017 but only now does the time seem right.The major shareholder of Headhunter is Elbrus Investment Capital which owns 60% of Headhunter through Highworld Investments Ltd. ELQ VIII Investors Ltd (a division of Goldman Sachs) also own some of Headhunter. Both are selling their shares as part of the placement.Headhunter was owned until 2013 by Mail.ru Group which is one of Russia's answers to US tech majors (Yandex being the other). Mail.ru itself is part controlled by South Africa's Naspers, which undermines the impression that the Russian state is creeping into total control of the Russian internet. Since 2013 Headhunter has flourished - making a profit of over RUB 1 billion in 2018. It now hosts about 600 000 job advertisements.The only other Russian tech companies listed on major US exchanges are Qiwi, Viplecom...

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