Date

Wed - 13.12.2017


Mail.ru files for $876 million IPO

Mail.ru files for $876 million IPO

Facebook Inc. and Groupon Inc. investor Mail.ru Group Ltd. Has filed a US$876 million IPO to go public on the London Stock Exchange, Bloomberg reported today.

The Russian Internet group is publishing for a valuation of up to $5.7 billion, the Wall Street Journal noted. It is looking to sell 3.03 million new shares and 28.59 million existing shares in the form of global depositary receipts at between $23.70 and $27.70 per GDR. If it's successful, the IPO will be the largest in the United Kingdom since July, when mining fund Vallar Plc raised $1 billion. Mail.ru could raise up to $83.1 million, and the company's owners could make up to $792 million from selling their stake in the IPO.

However, the valuation looks to be "too high" - more expensive than Internet companies anywhere but China, analysts told the WSJ.

"Such a valuation must assume significant growth of all the assets and the additional value from the synergies between them," Andrey Bogdanov, analyst at Gazprombank, told Reuters.

The Moscow-based Mail.ru owns 2.4 percent of Facebook, 5.1 percent of Groupon and 1.5 percent of Zynga Game Network, according to Bloomberg.

Author

Leah McBride Mensching

Date

2010-10-26 16:16

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