Yandex, Russia’s Leading Search Engine, Considers IPO

Russia’s number one search engine
, Yandex, is reportedly considering an IPO that could raise £1 billion ($1.56 billion USD) for the company in early 2011. The company is said to choose London (LSE) for its floatation, but may as well end up picking NASDAQ.
A Yandex spokeman declined to confirm or deny the IPO plans, saying, “As a growing company, we continually evaluate various financing and strategic alternatives, but it is our policy not to comment on our plans in this regard”.
Earlier this month, another Russia’s leading online company, raised $1 billion in London, as a result of its IPO.

Founded in 1997, this year Yandex’s share of the Russian search market amounted to 64.0%, Google falling well behind with only 22,1%. In the May of 2010, comScore ranked Yandex the 7th among the top 10 of the world’s most popular search engines. Generating traffic of more than 53 million users from all over the world, Yandex also enjoys a great popularity in Ukraine, Belarus and Kazakhstan serving 26%, 37% and 25% of searches in these countries, respectively. Last year the company reported total revenues of over $278 million. Contextual and display ads made up 86 % and 11 % of its revenues, respectively. The company doesn’t unveil its plans for this year, although it’s obvious that contextual advertising in the Russian Internet market is rapidly growing.

Yandex is one of the largest Russian high-tech companies with an estimated staff of about 2,500 employees, and branches all over Russia, Ukraine (Kiev, Simferopol, Odessa) and in the USA (in Palo Alto, CA).

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