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Mail.Ru Hits IPO 'Sweet Spot'

It looks like the heady days of skyrocketing tech IPO's are back -- or at least for some international investors. On its first day of trading, investors sent the newly minted stock of Mail.Ru Group soaring on the London Stock Exchange. At least for the moment, the largest Internet company in the Russian-speaking world is now worth about $5.7 billion. The global implications are clear as Mail.Ru presently owns a small stake in Facebook, and, according to The Wall Street Journal, "now seeks to capitalize on advantages over international competitors in the country's growing online market."

Strategist Chris Weafer tells The Journal: "While most other IPOs have struggled in tough market conditions, Mail.Ru has certainly hit a sweet spot." Mail.ru, which includes Russian email, social-networking and gaming sites, offered 32.93 million ordinary shares in the form of GDRs, equivalent to $912.04 million, according to The Journal. Investors, meanwhile, were reportedly drawn to the IPO as a bet on Russian economic growth.

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