MOSCOW (Reuters) – Russia’s largest online taxi service Yandex.De I will probably sell the new shares in its planned initial public offering (IPO), an executive from its majority shareholder of Yandex, told Reuters.
Greg Abovsky, Yandex, COO, speaks during an interview with Reuters in California. In st. Petersburg, Russia, June 6, 2019. REUTERS/Maxim Shemetov
The Russian internet company, Google, and the U.S. group Uber Technologies, Inc. and combined it with their taxi companies in Russia, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, in 2017, to deal with an enlarged Yandex.Taxi.
The company was valued at more than $3.8 billion in the period. Yandex holds a 59.3% stake in, Uber has to 36.6%, and Yandex.Cab’s own staff, to 4.1%. Since 2017, the company has entered Israel, the food supply sector and in other fields as well.
Greg Abovsky chief financial officer and the chief financial officer at Yandex, said Yandex had yet to decide on a stock exchange of the IPO of Yandex.Taxi, bus, or in the timing and the size of the deal.
“However, we believe that the Moscow Exchange is an important exchange. At the same time, it should be taken into consideration is that the Uber is trading on the new york stock exchange, and (with the rival taxi company), Lyft is on the NASDAQ,” Abovsky said.
Yandex itself in the market, on the NASDAQ stock exchange and has a market cap of nearly $13 billion, according to the Refinitiv Eikon data. Uber has a market cap of $73 billion.
“We, Yandex, would not be willing to sell a single share, we would rather be a buyer than a seller. However, I do think that some of the shares to be sold, which, of course, and it is most likely to be the primary a shares, and not in the secondary,” Abovsky said, referring to the new ordinary shares issued by the company, in place of the old one.
“In view of the fact that the company Yandex.Cab has a $400 million cash on the balance sheet, the value of the primary shares to be sold will have to be small to minimize our dilution.”
“(At the same time, A certain amount of cash that is needed for a … an initial public OFFERING to be of interest to investors. Small Ipos trade poorly, and have been very well received by the market,” Abovsky added to it.
Uber couldn’t immediately be reached for comment on whether it plans to sell shares in the IPO.
Abovsky said Yandex.Cab’s sales have almost quadrupled from last year, as part of a global boom in online taxi services.
Sooner or Yandex, it would have to have a banking license to provide financial services for its internet activities, Abovsky said Yandex had launched a co-branded card of Tinkoff Bank, and Alpha Bank.
“Financial services is an idea that applies to all of Google’s services. There is a synergy between the internet and services such as financial services,” he said, adding that, currently, the co-branded card, available from these requirements.
Oleg Tinkov, the founder and main shareholder in Russia’s TCS Group, said in June that if the bank was to merge the assets of Yandex, the combined company would be worth more than $20 billion. Yandex rejected the idea.
Additional reporting by Anastasia Teterevleva and Maria Kiselyova; Editing by Mark Potter