Central regions | Finance, business | Transport, logistics
Yandex readies its ride-hailing arm for IPO
31 Oct '19
Russian search engine Yandex’s ride-hailing unit, Yandex.Taxi, is in talks to hire Morgan Stanley and Goldman Sachs Group to manage its initial public offering, Bloomberg reported, citing a person familiar with the matter.
MLU BV, as the unit is legally known, is preparing for a dual-listing in Russia and the U.S., the person said, who asked not to be identified as the talks are confidential. Yandex first flagged in 2017 that it intended to list its taxi arm.
Yandex.Taxi has discussed a wide range of potential valuations for the business ranging from $5bn to $8bn, depending on final make-up of the listed business as well as investor demand, the person said. Analysts at Goldman Sachs recently valued the unit at $7.7bn, according to estimates seen by Bloomberg News.
Yandex.Taxi is part-owned by Uber Technologies. Uber agreed to cede control in its operations in Russia and the former Soviet Union to Yandex two years ago. The joint venture, controlled by Yandex and 37% owned by Uber, was valued at $3.8bn when formed in February 2018.
The unit, which also includes food delivery and self-driving cars, turned profitable in the second quarter of this year. It is not yet clear whether self-driving and food delivery would be included in the IPO.
No final decision has been made, and Yandex could opt to keep the unit.