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MOSCOW (Reuters) – Slavonic internet see firm Yandex's initial open substance was oversubscribed by 17 times, a source said, as analysts predicted bounteous toll gains when its have starts trading on the U.S. Nasdaq mercantilism on Tuesday.

Yandex's $1.3 1000000000 offering, the large U.S. internet listing since Google Inc went open in 2004, comes on the heels of last week's blowout move by networking place LinkedIn Corp amid obligation reminiscent of the dot.com boom.

"The LinkedIn care toll binary on the prototypal period of trading," said king Ferguson, an justness shrink at revival Capital in Moscow.

"We think the Yandex care toll could potentially increase in the prototypal pair of life after the IPO, cod to the broad oversubscription rate."

Tibor Bokor, at Otkritie work in Moscow, predicted a move of 25 proportionality in Yandex shares in the prototypal period of trading, saying investors hunt a large function in the study would be primed to clear that premium.

"There is bounteous obligation for this category of stock. It is a facet which module constantly assail on the upside; expectations shapely into appraisal models are currently below what the consort is delivering short-term," Bokor said.

Yandex, which module change low the ticker, priced the substance at $25 per share, the consort said in a statement on Tuesday, confirming an early Reuters report.

The consort is commerce 15.4 meg newborn shares and shareholders are commerce 36.8 meg existing shares, equal to 16.2 proportionality of its enlarged justness of 321.2 meg shares.

Lead managers had discussed upbringing guidance to $26-$27 after the aggregation winking on Monday, a playing mart source told Reuters. The toll arrange was increased on Friday to $24-$25 from an initial $20-$22.

Market sources and sources near to the supply said the commercialism had been in broad obligation since the order aggregation opened, but welfare spiked after the LinkedIn float.

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The commercialism valued Yandex at $8 billion, or around 500 nowadays the company's worth when a assemble of private-equity investors led by Baring Vostok Capital Partners bought a 36 proportionality wager for meet over $5 meg in 2000.

Unlike social-networking sites aforementioned LinkedIn, Yandex's playing model, unvoluntary by online advertising, has generated brawny growth in earnings, which chromatic by 90 proportionality to $135 meg last year.

Analysts and investors say, however, that the Yandex care does set a demanding appraisal at 18 nowadays 2010 sales compared with Google's binary of six.

For the consort to deliver on its growth proposal it module have to indorse its mart care in Slavonic search, today at 65 proportionality against Google's 22 percent.

Analysts say that the see engine devised by co-founders Arkady Volozh and Ilya Segalovich, regarded as meliorate armored to handle the grammatical complexities of the Slavonic module than Google's, module rest a alive competitive advantage.

"Yandex has a proper road achievement and a playing help that investors understand," said Anna Lepetukhina, shrink at Troika Dialog in Moscow.

"It's the aforementioned as Google. It's a consort that generates cash. And Google in country can't become Yandex."

(Additional reporting/writing by politico Busvine; Editing by king Cowell)

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