Facebook investor Mail.ru announces IPO pricing

Russia-based Mail.ru, also an investor in social-gaming company Zynga, seeks a $23.70- to $27.70-per-share price on the London Stock Exchange.

Russia-based Mail.ru Group, a company that has invested in both Facebook and social-gaming company Zynga, has announced per-share pricing for its initial public offering on the London Stock Exchange.

According to the company, it plans to offer its shares for $23.70 to $27.70. At that price, Mail.ru will have an equity value between $4.86 billion to $5.71 billion after its shares are issued.

Proceeds from its IPO will be used to fund its acquisition of an additional 7.5 percent of Russian social network vKontakte for $112.5 million.

Mail.ru's portfolio of services include e-mail, social networking, and online-gaming sites. Its properties reach about 70 percent of all Russian Internet users each month, the company said in a statement.

But it's Mail.ru's stake in Facebook and Zynga that make it most notable.

Last year, Mail.ru Group, known then as Digital Sky Technologies, invested $200 million into Facebook . In return, it received 1.96 percent ownership of the world's top social network, based on a valuation of $10 billion.

More than a year later, Mail.ru Group now owns 2.38 percent of Facebook. It also holds a 1.47 percent equity interest in FarmVille creator Zynga, as well as a 5.13 percent stake in Groupon. Earlier this year, Mail.ru acquired instant-messaging service ICQ from AOL for $187.5 million.

Mail.ru Group will trade under the ticker MAIL when its shares are issued.


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