The IMF trims its economic growth forecast again as the U.S.-China trade war continues, Brexit worries linger and inflation remains muted.Economyread more
Citigroup thinks Tesla investors hoping for a post-earnings rally later this week should scrutinize a pair of related financial metrics.Investingread more
Olive branches were extended from both China and the U.S. as the two nations are set to restart face-to-face trade negotiations after a monthlong truce.Marketsread more
Coca-Cola topped Wall Street's expectations for earnings and revenue.Food & Beverageread more
New disclosures show Facebook and Amazon each spent more than $4 million on lobbying activity in the second quarter of 2019.Technologyread more
Boris Johnson, one of the biggest voices in the Brexit movement, wins the Conservative Party leadership race by a 2-1 margin.Europe Politicsread more
Disney can nearly double its earnings by 2024, Morgan Stanley said in a note to clients on Tuesday.Investingread more
Amazon is expected to report its second-quarter earnings on Thursday.Investingread more
The largest residential brokerage company in the U.S. is partnering with the largest online retailer in a strategy to boost sales for both.Real Estateread more
Here are the biggest calls on Wall Street on TuesdayInvestingread more
Canaccord Genuity's Tony Dwyer believes stocks are about to fall as much as 5% from their all-time highs.Trading Nationread more
MOSCOW, June 25 (Reuters) - Russia's largest online taxi service Yandex.Taxi is likely to sell new shares in its planned initial public offering (IPO), an executive at its majority shareholder Yandex told Reuters.
Russian internet company Yandex and U.S. group Uber Technologies Inc combined their taxi businesses across Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan in 2017 to create an enlarged Yandex.Taxi.
The company was valued at more than $3.8 billion at the time. Yandex holds a 59.3% stake, Uber has 36.6% and Yandex.Taxi staff own 4.1%. Since 2017, the firm has entered Israel, the food delivery sector and other areas.
Greg Abovsky, chief operating officer and chief financial officer at Yandex, said Yandex had yet to decide on a stock exchange for the IPO of Yandex.Taxi, or the timing and size of the deal.
"But we consider the Moscow Exchange an important exchange. At the same time, it should be taken into account that Uber is trading on the NYSE, and (rival taxi firm) Lyft on NASDAQ," Abovsky said.
Yandex itself trades on NASDAQ and has a market capitalisation of almost $13 billion, according to Refinitiv Eikon data. Uber's market capitalisation is $73 billion.
"We as Yandex would not like to sell a single share - we would rather be a buyer, than a seller. But I guess some shares would have to be sold, obviously, - and most likely, these will be primary shares, not secondary," Abovsky said, referring to new shares issued by the company rather than existing ones.
"Given that the company (Yandex.Taxi) has $400 million of cash on its balance sheet, the amount of primary shares that would be sold will be small to minimize our dilution."
"(At the same time) A certain amount of liquidity is needed for ... an IPO to be interesting for investors. Small IPOs trade poorly and are poorly received by the market," Abovsky added.
Uber could not immediately be reached for comment on whether it plans to sell any shares in the IPO.
Abovsky said Yandex.Taxi's revenue almost quadrupled last year, part of a worldwide boom in online taxi services.
Asked if Yandex would need a banking license to offer financial services to accompany its internet operations, Abovsky said Yandex had launched a co-branded card with Tinkoff Bank and Alfa Bank.
"Financial services is an idea that is applicable to all Yandex services. There is a synergy between internet services and financial services," he said, adding that currently the co-branded card serviced those needs.
Oleg Tinkov, the founder and key shareholder in Russia's TCS Group, said earlier in June that if his bank was to merge assets with Yandex, the combined company would be worth more than $20 billion. Yandex dismissed the idea.
(Additional reporting by Anastasia Teterevleva and Maria Kiselyova; Editing by Mark Potter)