Demand for YNDX looks extremely robust

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Yandex -- which drives 65% of all Web search traffic in Russia -- priced its IPO at $25 a share, up from the $20 to $22 range expected before LinkedIn made its triumphant market debut last week. Shares have been allocated to large tech and long-only players, so 99% of the community who looked for allocations will be disappointed. Expect these shares to skyrocket today -- the deal was 20 times oversubscribed. We looked at it, but it just did not fit our profile even thought I have known the company for years and think it is a first-class story. In any event, this would value YNDX (quote) at roughly double what GOOG ( quote ) fetches, but its P/E would still be roughly half as rich as the stratospheric 71 at which Chinese counterpart BIDU ( quote ) currently trades. Naturally, the Chinese Web market is theoretically growing much faster than the Russian market, which in turn is a lot less mature than the U.S. market that GOOG dominates. Institutional investors in Moscow are shrugging a little at the "scary" multiples, but note that there is not much sense in fighting the market for what is likely to be the hottest ticker symbol to com out of Russia in ages. At least online, Russian advertising spending jumped 51% over the last two years, compared to a 6% decline in TV ad budgets. Does this mean that a triumph for Yandex will come at the expense of TV-oriented CTC Media ( CTCM , quote ), which was previously the most obvious Russian media play out there? Hard to tell as yet. Russian stocks are now so deeply defensive that CTCM would probably be losing ground today either way: But with shares listing in New York, Yandex might not be a Moscow play so much as a global Internet play. Watch YNDX.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks: BIDU , CTCM , YNDX

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