* Luxoft and parent IBS raise $35 mln each
* IPO priced at $17, in the middle of range
* Shares rise as much as 23.5 pct
* Company valued at about $684 mln
June 26 Shares of Luxoft Holding Inc, a
provider of software and consulting services to companies such
as Boeing Co and UBS, soared in their New York
debut, mirroring the strong performance of rival Epam Systems
Inc last year.
Luxoft shares rose as much as 23.5 percent to $21 in morning
trade on the New York Stock Exchange, valuing the unit of
Russian IT group IBS Group at about $684 million.
"We will continue to grow our business at around 20 percent
this year," Luxoft Chief Executive Dmitry Loschinin told Reuters
on Wednesday after the company's stock started trading.
"We are going to continue providing the same margins, which
we have been doing in the past," he said.
Luxoft recorded an operating margin of about 14 percent in
the year ended March 31 on sales of $314.6 million and net
income of $37.5 million. About 90 percent of its sales came from
North America and Europe.
The company has been growing strongly. In the year-ended
March 2011, profit was $25.9 million on sales of $198.4 million.
Frankfurt-listed IBS had been planning the IPO since the
strong debut of Luxoft's Russian rival Epam in February last
Shares of Epam - considered the Eastern European equivalent
to offshore outsourcing companies such as India's Infosys Ltd
and Cognizant Technology Solutions - rose as
much as 25 percent in their debut.
The stock has almost doubled since then, valuing the company
at $1.18 billion.
"Last year was not the best time. Spring was not very
friendly, so we decided to wait. Now its much better timing,"
said Loschinin, a software engineer who has run Luxoft since its
inception in 2000.
Luxoft sold half the 4.1 million Class A shares that were
offered on Wednesday, raising about $35 million. It had priced
the shares at $17 each, the midpoint of the indicative range.
IBS, which sold the remaining 2 million shares, will have a
82.9 percent voting stake in Luxoft.
UBS, Credit Suisse Securities and JPMorgan Securities were
among the underwriters to the offering.
Luxoft's stock was up 23 percent at $20.95, making it the
top percentage gainer on the NYSE. About 1.4 million shares had
changed hands by noon.