RenCap: HeadHunter’s floatation shows demand for Russian assets

MOSCOW, Jun 17 (PRIME) -- An initial public offering (IPO) of recruiting company HeadHunter has demonstrated there is demand for Russian assets, although selective and aimed at growth potential, Dmitry Brodsky, head of the equity capital markets in Russia and the CIS of investment company Renaissance Capital, told PRIME on Monday.

HeadHunter’s IPO is certainly a successful deal, Brodsky said.

The recruiting company raised U.S. $220.1 million in the IPO on the Nasdaq at $13.5 per American depositary share in early May.

“Russia has many dividend stories, but experience shows that it’s rising value that attracts investors most and produces better valuation,” the executive said.

“HeadHunter offered a very good combination of rapid growth, dividends, and a retail-focused Internet business. The company had a very good deal and demonstrated that placements in the current situation are possible. But in order to attract investors, an investment story should be of a good quality.”

Many companies think of IPOs. “HeadHunter’s IPO showed that placements are possible. Other placements, that did not take place, show that investors are choosy and are not ready to pay the price acceptable for shareholders. So, there are deals that are feasible, but companies are not interested in them at any price,” Brodsky said.

End