Russian search outfit Yandex, which is known as “Russia’s Google” has raised $1 billion in its trading debut as investors think that it can beat the search outfit from America.
Opening the champers and talking to AP, co-founder and chief technology officer Ilya Segalovich said that Google is a great company, but his outfit is better.
Yandex raised $1.3 billion in its IPO, flogging 52.2 million shares for $25 each. This makes the outfit worth $8 billion.
There are some concerns about another dot.com bubble forming. Some think that Yandex is going to be the next best thing, other analysts think that people are paying crazy money for tech businesses again.
Trip Chowdhry, of Global Equities Research, told AP that Yandex’s fundamentals were strong but that its valuation is not.
He thinks people have been sold on the idea that Yandex is the new Google, but it isnt. Yandex is not going to be global and haven’t shown anything that convinces him it can get out of Russia.
Yandex has not said how it will use the money it made in the IPO. Segalovich said it was vital to have large cash balances to be prepared for all kinds of things.
Yandex uses online advertising to make its cash. In the last year it saw its profits rise by 90 percent.
It is based around a search engine devised by Segalovich and co-founder Arkady Volozh, which has a competitive advantage over Google because it is better equipped to handle Russian.