Nebius Group Set to Revive Nasdaq Listing Amid High Expectations
After a lengthy suspension, Amsterdam-based AI infrastructure firm Nebius Group is poised to revive its Nasdaq listing on Monday, sparking anticipation of volatile trading among investors. The company’s stock was previously listed under Yandex, often referred to as “Russia’s Google,” before being suspended following Russia’s invasion of Ukraine in February 2022.
A New Era for Nebius
In July, Nebius emerged from a $5.4 billion deal to split Yandex’s Russian and international assets, presenting a distinct proposition from its predecessor. With a focus on the growing AI cloud market, Nebius is targeting a slice of this lucrative industry. The company’s stock last traded at $18.4 per share in February 2022, and with a free float of 78.1% mainly held by Western investors and funds, experts predict extremely high volatility in the first few days of trading.
Valuation and Growth Prospects
According to an analysis by Denis Buivolov, a personal investor in Nebius and head of research at BCS’ venture capital and pre-IPO department, the company is valued at $4.6 billion, or $23 per share. This valuation is based on company plans and comparisons with firms such as CoreWeave, Lambda Labs, and Sacra. Nebius anticipates sharp growth in the coming years, with revenue expected to increase three to four times in 2025 to $500-$700 million.
Investor Sentiment
Dr. Jan-Oliver Strych, adviser to his family fund which invested in Nebius, notes that the stock’s value will be determined by the positive liquidity shock from hyped AI investor demand versus the negative impact of impatient sellers. Another investor, with a shareholding once worth around $200,000, is considering buying more shares on Monday should the price plummet as people who have written off their stakes are forced to sell.
Capital Expenditure and Expansion Plans
Nebius plans to spend between $600 million and $1.5 billion on capital expenditure to increase capacity at data centres in Finland, France, and North America. The company’s core business involves providing Nvidia graphics processing units (GPUs) and AI cloud as services, positioning it for growth in the burgeoning AI cloud market. As Nebius revives its Nasdaq listing, investors are eagerly awaiting the opportunity to participate in the company’s future growth.
Leave a Reply