Page 75 - RusRPTJul19

Etalon Group, GDR 10.10% 9.60% 10.10% 9.60%
Inter RAO, ord. 9.90% 3.20% 4.20% 9.90%
Alrosa, ord. 9.90% 12.50% 9.90% 12.50%
Moscow Exchange, ord. 9.30% 6.40% 8.90% 9.30%
Tatneft, ord. 9.20% 5.60% 7.20% 6.60%
Source: Bloomberg, Company data, VTB Research Cap
8.3.3 ECM news
Yandex.Taxi, taxi ordering service of Russian internet giant Yandex is likely to sell new shares in an IPO, Reuters said on June 25 citing the COO of Yandex Greg Abovsky. In February 2018 Yandex.Taxi and Uber have combined the businesses in Russia, Kazakhstan, Belarus, Azerbaijan, Armenia and Georgia, investing in the capital of the new company $225mn and $100mn respectively, with the company valued at $3.8bn at the time. The 59.3% stake of the joint venture belongs to Yandex, 36.9% belong to Uber, and another 4.1% belong to employees. Yandex has not yet decided on where to list the Yandex.Taxi or the size of the deal, according to Abovsky. "We consider the Moscow Exchange an important exchange. At the same time, it should be taken into account that Uber is trading on the NYSE, and (rival taxi firm) Lyft on NASDAQ," he told Reuters, while noting that the issue would most likely be primary shares, not secondary. Yandex trades on NASDAQ with a capitalization of almost $13bn,while Uber’s market capitalization is $73bn. Previously in March Sberbank valued Yandex.Taxi joint venture with Uber at $7.5bn, which implies $13.75 per Yandex share, 27% of the target price. The bank expects Yandex.Eats, the food delivery segment of the taxi business to grow between 2018 and 2022 at compounded annual growth rate (CAGR) of 88% and its net revenues at a CAGR above 100%.
Russian metals major Novolipetsk Metallurgical Kombinat (NLMK) will put up a 2.6% stake for sale by Cyprus-registered Fletcher Group of Vladimir Lisin that controls 84% in the company, Vedomosti daily reported on June 28 citing a report by the Goldman Sachs. Reportedly, the accelerated book building SPO was undertaken to increase the freefloat of NLMK, improve liquidity, and further diversify the investor base, with an ultimate goal of further improving NLMK's capitalisation, unnamed sources close to the company told Vedomosti. As reported by bne IntelliNews, the capitalisation of Lisin’s NLMK topped $15.88bn on London Stock Exchange on June 4, overtaking the world's largest steel maker ArcelorMittal, worth $15.7bn in New York, and having almost the same capitalisation on the Euronext exchange of $15.9bn. "The placement appears to be profit taking at peak prices, as NLMK is currently the most expensive name in the steel industry, valued at 11.2 M2M P/E," BCS Global Markets commented on June 2018. NLMK is one of the most modern smelters in Russia, its construction having been completed shortly before the
75 RUSSIA Country Report July 2019 www.intellinews.com