Facebook IPO May Raise Cost of Mail.ru Shares – Analysts

A successful initial public offering of the world’s largest social network Facebook will influence positively on cost of shares of Russia’s Mail.ru Group, which holds a stake in Facebook, analysts polled by RIA Novosti said on Friday.

Facebook floated 421.23 million of its shares at a price of $38 per share late on Thursday. The company raised $16 billion and its valuation was estimated at $104 billion.

Facebook shares will start trading on the NASDAQ later on Friday. Facebook head Mark Zuckerberg has made a symbolic call for an opening of the stock exchange trading session in honor of the first flotation of any social network ever.

“News is positive for Mail.ru. Firstly, guideline price for Mail.ru securities will grow according to Facebook’s valuation at $104.2 billion. Secondly, impressive results of Facebook stir investors’ interest in internet companies,” RMG Securities analyst Kseniya Arutyunova told RIA Novosti.

Uralsib Capital chief analyst Konstantin Chernishev agrees that the successful IPO of the social network will influence positively on the market on the whole and on shares of Mail.ru Group particularly.

Mail.ru floated about 19.6 million of Facebook shares and is raising about $745 million.

One of the fastest-growing companies in the tech industry, Facebook filed for its IPO in March. Zuckerberg will hold 55.8 percent of voting shares in the company after the IPO, down from a previously planned 57.3 percent.

Morgan Stanley investment bank is lead manager for the flotation.


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