Install

Get the latest updates as we post them right on your browser

. Last Updated: 07/27/2016

Facebook IPO Could Boost Mail.ru

Shares ofInternet company Mail.ru Group could rise as aresult ofthe initial public offering planned bysocial-networking site Facebook, aVTB Capital report said.

Mail.ru Group owns 2.38 percent ofFacebook, which said ina filing toU.S. regulators Wednesday that it seeks toraise up to$5 billion inan IPO. According tomedia reports, thecompany is hoping fora valuation of$75 billion to$100 billion.

Given such ahigh valuation, theshare price ofMail.ru Group could rise 7 percent to13 percent fromits current level, theVTB Capital report said, Vedomosti reported Thursday.

Mail.ru Group is run byinvestor Yury Milner, who also runs Internet investment group Digital Sky Technologies. Milner's investment firm became known internationally after buying a$200 million stake inFacebook inMay 2009.

TheFacebook IPO prospectus said thesocial network's penetration is less than 15 percent ofRussian Internet users, onpar with thenumber ofFacebook users inJapan andSouth Korea.

Russia's most popular social network is theFacebook look-alike Vkontakte, which is backed byMail.ru Group. Vkontakte was considering anIPO but has put off its plans, Bloomberg reported Monday.