CIAN.RU

Tsian (Aireeltor LLC) is a technology company that creates Internet-products on. real estate market of Russia The company's offices are located in,, To Moscow,, St. Petersburg,, Novosibirsk,, and Yekaterinburg Omsk(Arkhangelsk Chelyabinsk Krasnoyarsk data Tyumen for Perm May 2021).

Performance indicators

2022: Revenue growth by 37% to RUB 8.3 bn

Cian published its 2022 financial statements.

1. Revenue for the year increased by 37%, to 8.3 billion rubles. 2. Adjusted EBITDA increased more than 5 times to RUB 1.7 billion. 3. Scorecard profitability. EBITDA rose 15 pp to 20.2% 4. Average audience of the service per month (MAU) - 17.9 million users

History

2023

Completion of the acquisition of Practice of Success

Cian PLC received the approval of the Government Commission for the Control of Foreign Investments in the Russian Federation and signed a purchase and sale agreement for the acquisition of 100% shares in the authorized capital of SmartDeal (Practice of Success LLC). This became known on September 19, 2023. Read more here.

Termination of listing on the New York Stock Exchange

On July 24, 2023, the New York Stock Exchange (NYSE) announced the termination of the listing of Cian.ru shares. The company said that this decision does not affect the financial position of the real estate announcement service and its activities

The New York Stock Exchange hereby notifies the Securities and Exchange Commission of its intention to remove Cian PLC's American Depositary Receipts (ADSs) from listing and registration on the NYSE when the business opens on August 1, 2023..., as,

New York Exchange excluded "Cian.ru" shares from trading

Trading in Cian.ru receipts on the New York Stock Exchange was first suspended from February 28, 2022. On March 15, 2023, the exchange decided to stop them completely, the message recalled. On March 28, 2023, Cian PLC filed an appeal with the exchange's board of directors committee against this decision, but on July 21, 2023, the committee upheld the delisting decision.

ADS's delisting on the New York Stock Exchange will take effect July 31, 2023, 10 days after the delisting notice was filed. The company expects delisting will not have an immediate impact on ADS's terms and conditions under the ADS program, which will continue in its current form. These events did not affect the trading of ADS companies on the Moscow Exchange, which continue as usual, said in "Cian.ru."

The company also added that it, after delisting, will continue to fulfill its reporting and disclosure obligations for the entire time as long as the company's ADSs retain the status of securities registered under the United States Stock Exchange Act of 1934 (as amended).^[1]

Re-entering into a preliminary purchase agreement for 100% of the Success Practice

Cian PLC ("Cian.ru"), which develops an online platform for real estate announcements in Russia, on May 2, 2023 announced the re-conclusion of a preliminary agreement on the acquisition of 100% in the authorized capital of Practice Success LLC, which provides SmartDeal electronic registration service and other related services for various types of real estate transactions. The contract was concluded by a subsidiary of the Cian.ru group, LLC Aireltor. Read more here.

Launch of identification through Public services

Cian launched the ability to identify users through Public services. The company announced this on March 27, 2023.

This will confirm the account using the Unified Identification and Authentication System (ESIA), which in turn will help protect the user's personal data, improve the quality of use of the service and reduce the number of fake accounts. The association of accounts will occur exclusively with the consent of the user.

Cian was one of the first to become a participant in the experiment of the Russian government to develop a tool for identifying and authenticating users of commercial resources using the FGIS ESIA.

Integration with ESIA is safe. Now users have the opportunity to easily and quickly register, as well as verify their account. This further increases the security of using services.

A bundle of accounts will occur exclusively at the request of the user. Cian will not transfer user data and information about their actions on the site. Linking Public services account to a Cian.ru account is needed in order to receive data from Public services in your personal account Cian.ru with the consent of a citizen.

Cian.ru main task is to create convenient and safe services that will help the user at all stages of the journey: from finding a real estate object to conducting a transaction, signing contracts and performing other legally significant actions online. Verification through Public services will help the user further simplify and secure this path, as well as reduce the number of fraudulent and fake accounts, help protect personal data and improve the quality of use of Cian.ru products. At the same time, it is important to emphasize that the identification process on Cian.ru does not provide for the transfer of any information about user data to Public services, said Dmitry Grigoriev, General Director of Cian.ru.

Goldman Sachs fully withdrew from the owner's equity Cian.ru

The structures of the American Goldman Sachs Group in February 2023 reported a decrease to zero in the share in Cian PLC, which owns the rental and real estate trading service Cian.ru.

2022

Entry of Vladimir Verkhoshinsky into the board of directors of "Cian.ru"

At the end of July 2022, Chief Managing Director Alfa-Bank Vladimir Verkhoshinsky joined the board of directors Cyanogen of "," as well as the audit committee of the company's board of directors. This was reported by the press service of the service for the sale and lease of real estate. More. here

CEO change

On April 25, 2022, Cian PLC announced the future appointment of Maxim Melnikov, the current CEO of Cian.ru, as Chairman of the Cian PLC Board of Directors. Due to the fact that Maxim is transferring to the post of Chairman of the Board of Directors, Dmitry Grigoriev will take the post of CEO from May 30, 2022. Read more here.

Launch of online booking and daily rental accommodation

On March 24, 2022, Cian.ru announced the launch of online booking and daily rental functions. The new service, which, as stated in the company, was the result of a surge in demand for daily rental of apartments in the Russian Federation and a general trend for the development of domestic tourism, is available on the website and mobile application.

Online booking is the norm of the market and a convenient option that makes the rental process understandable and completely transparent. Now Cian.ru users have the opportunity to book their favorite object at a fixed price for the required period - without additional calls and finding out if it is actually available, - the press service of "Cian.ru" reports.

"Cian" launched online booking and daily rent

The online booking option is available for most properties in regions throughout Russia and for some listings in Moscow and St. Petersburg. Users can book accommodation on the site at a fixed price for the required period.

As the head of the daily rental of "Cian.ru" Daria Abramova noted, if in March 2021 the share of apartments in daily rent was only 12%, then a year later the figure increased to 26%.

We see that there is a demand for this product, and it is constantly growing - this is due to both market changes and the development of domestic tourism, - said Abramova.

By March 2022, Cian.ru is one of the largest short-term rental bases in Russia, where more than 100,000 objects are available for daily booking. Also, ads with a direct phone number of the landlord are still available in the database - for those who are used to contacting the owner of the object directly. Other major players in the short-term rental housing market in Russia include online booking of accommodation for recreation "Суточно.ру" and Avito Real estate"."

Stopping trading in shares on the American stock exchange

At the end of February 2022, the American exchanges Nasdaq and NYSE stopped trading in shares of Yandex, Ozon, MTS, Mechel and Cian.ru after the introduction of US sanctions against Russia. Read more here.

Purchase of electronic real estate registration service SmartDeal

Cian bought the SmartDeal electronic real estate registration service. This deal was officially announced on January 24, 2022. At the same time, the financial component of the company was not disclosed. Read more here.

2021

The total volume of IPO Cian.ru amounted to $312.2 million

On December 22, 2021, the results of the initial public offering of Cian.ru shares became known. The IPO of Cian plc, the holding company of the announcement service for the sale and lease of real estate, reached $312.2 million, of which the company itself received $64.7 million, and selling shareholders $247.6 million.

As Interfax reports with reference to the company's message, the underwriters of the Cian.ru listing exercised the option by half, having bought 1.3 million American depositary receipts (ADS) from the selling shareholders. With the full exercise of this option, the volume of placement could be up to 20.945 million ADS, and the volume of the transaction would be $335.17 million.

According to the results of the IPO, "Cian.ru" earned $312.2 million

The selling shareholders in the IPO were the structures of Elbrus Capital, Goldman Sachs, the founder of Cian.ru Dmitry Demin, as well as Sergey Osipov (the ex-head of the service, which became an integral part of the service during its formation).

The IPO was organized by Morgan Stanley Goldman Sachs International, J.P. Morgan BofA Securities, "," Renaissance CapitalVTB Capital"," "," " Raiffeisen Bank and Tinkoff Alfa CIB. Underwriters purchased ADS at an offering price of $16 per security. The size of the option was 2.73 million ADS.

By the close of the New York Stock Exchange on December 22, 2021, the Cian.ru quotes were $13.31, which is 8.88% more than the day before. At electronic trading on the same day, securities went up by another 1.2%, to $13.47, but this is still below the placement price of $16. The company's market capitalization by December 22, 2021 is $846.5 million.

In mid-December 2021, the head of Cian.ru, Maxim Melnikov, in a conversation with RBC, said that in the next few years the company could double its share in free float - up to 50%. SPOs are planned to be carried out by selling shares of investment funds.^[2]

Ability to enter via ESIA

On November 24, 2021, the Ministry of Digital Development announced the expansion of the possibility of using e-government infrastructure for business. The ability to enter through the ESIA first of all became available to users of resources such as hh.ru, Авто.ру and Cian.ru. Read more here.

Management Payment Plan $29.4 million

In November 2021, it became known that Cian.ru would spend more than half of the amount remaining after the placement of new shares on payments to management.

"Cian" IPO could bring $291 million. The main money was received by Elbrus Capital ($160 million) and Goldman Sachs, as well as the founder of Cian.ru Dmitry Demin and the former head of the service Sergey Osipov. Excluding money seized by shareholders, there were $55.7 million in net receipts. Of these, Cian.ru will spend about $29.4 million on payments to management under the phantom shares program. For example, Maxim Melnikov, CEO of Cian.ru, will receive $21.6 million.

After the IPO is completed, the company intends to launch a new employee motivation program. Up to 6.5% of the company's capital will be allocated to reward employees, which will dilute the shares of investors. After payments to management, the company will have $26.3 million.

Going public with the NYSE

On November 5, 2021, trading in Cian.ru shares under the ticker symbol CIAN began on the New York Stock Exchange. As part of the IPO, the online real estate ad platform sells 18,213,400 American depositary shares (ADS), of which 4,042,400 were offered by the company itself, and 14,171,000 ADS are some of the existing shareholders. One ADS represents one common share of "Cian.ru."

The offer price was $16 for one ADS, which corresponds to the upper bound of the previously named range. Selling shareholders also granted IPO underwriters a 30-day option to purchase up to 2732,010 ADS at the offer price less underwriting discounts and fees.

"Cian" entered the NYSE exchange

On the listing, "Cian.ru" earned about $291 million (if banks exercise an option, the amount of funds raised will grow to $335.17 million), and the company's market capitalization amounted to about $1.1 billion. By the opening of the NYSE site on November 5, 2021, the value of Cian.ru shares was $17.63, and the closure was $17.62.

The IPO was organized by the American financial conglomerate Morgan Stanley, investment bank Goldman Sachs International, financial holding JPMorgan, investment company BofA Securities, Renaissance Capital, as well as banks Raiffeisen Bank, Tinkoff and VTB Capital. Raiffeisen Bank is a creditor to Cian.ru, so the company can use part of the funds raised for the IPO to pay off obligations to the credit institution.

We had a very high demand, we settled at the upper end of the range. There was demand from all over the world: there are many institutional investors from both Europe and the United States. Many funds from Russia. We saw demand from our clients - real estate agencies, developers, banks. The demand was diversified, there was no anchor investor, "Cian.ru CEO Maxim Melnikov told Forbes.[3]

Debts to Raiffeisen Bank and admission to trading on the Moscow Exchange

On October 27, 2021 Moscow Exchange , American depositary shares representing ordinary shares of Cian plc (the parent company of real estate the Cian.ru sales and lease service) were admitted to trading. It is reported by "" Interfax with reference to the materials of the trading platform.

Cian plc papers are included by the Moscow Exchange in the first quotation list. Their trade code is CIAN.

In mid-October 2021, Cian.ru filed an application with the US Federal Securities and Exchange Commission for listing on the New York Stock Exchange (NYSE), a secondary listing was planned on the Moscow Exchange.

"Cian" went public

By October 28, 2021, the parameters of the Cian.ru IPO, such as the number of shares and the price range, have not been determined. It is planned that the shares during the IPO will be sold by both the company itself and its current shareholders, follows from the prospectus to the transaction.

Before IPO Cian.ru, it turned out that the company needed money due to debt problems - the company violated the covenants of the Raiffeisen Bank loan. Because of this, Cian.ru can not get a new loan from the Austrians. At the same time, Cian.ru has powerful competitors-money bags (Avito, Yandex.Real Estate, Domklik), which eat away his share.

In September 2021, Reuters reported on Cian.ru 's plans to raise about $300-400 million as part of the listing. The entire company can be valued at $1.3-1.9 billion for an IPO, it can raise $300-400 million, said Kirill Panarin, an analyst at Renaissance Capital (one of the organizers of the placement), during a call with investors. According to him, the Cian.ru business model is well known in foreign markets, and it has fewer investment risks than, for example, the Delimobil car-sharing service, which is also planning an IPO.

According to the information posted on the Cian.ru website, this is the largest Internet service in Russia for the sale and rental of real estate. The average number of unique users per month as of June 30, 2021 was 20.3 million (including the N1.ru portal), the average daily number of ads was 2.1 million. Cian plc, which is preparing to conduct an IPO, is the ultimate owner of the service's Russian assets - Aireltor LLC and Н1.ру LLC^[4]

Ivan Tavrin - shareholder of "Cian.ru"

In mid-October 2021, it became known about the appearance of the ex-head of MegaFon Ivan Tavrin among the shareholders of the service for the sale and lease of real estate "Cian.ru."

According to Interfax, citing a prospectus for the IPO of the Cypriot company CIAN plc., Bahamian OTAGA Limited, the beneficiary of which is Tavrin, owns 653,764 shares, or 1.01% of CIAN plc. OTAGA is controlled by Sequent (Schweiz) AG, which in turn is the trustee of The Goodwill Guy Trust. Tavrin is the beneficiary of this trust, and by extension a stake in CIAN plc.

Ivan Tavrin turned out to be a minority shareholder of "Cian.ru"

Also in the materials for the IPO "Cian.ru" are listed other shareholders:

• Elbrus Capital fund owns a 65.34% stake in CIAN plc;
• structures of Goldman Sachs investment bank - 14.11%;
• Cian.ru CEO Maxim Melnikov - 6.64%;
• MPOC Technologies (its beneficiary is Cian.ru co-founder Dmitry Demin) - 11.52%;
• Joox Limited of Sergei Osipov, who led one of the projects that later became an integral part of Cian.ru during its formation, - 1.37%.

The news agency notes that Tavrin, Elbrus Capital and Goldman Sachs are not participating in the same projects for the first time.

Cian intends to list its shares on the stock exchange under the ticker symbol CIAN and earn about $100 million on the listing. The organizers of the placement are Morgan Stanley Goldman Sachs International,, JPMorgan BofA Securities, "," Renaissance Capital"," "" and Raiffeisen BankTinkoff"." VTB Capital The IPO is expected to take place after U.S. Securities and Exchange Commission (SEC) it completes the review process. A secondary listing is planned for. Moscow Stock Exchange

Earlier it was reported that as part of the IPO, the service for the sale and lease of real estate can be valued at $1 billion. The materials for the listing did not report the intended assessment.^[5]

FAS refused Avito to buy Cian.ru

In October 2021, the Antimonopoly Service decided that the merger of Avito and Cian.ru would lead to limited competition.

Open letter from Russian online services against anti-competitive behavior of Yandex

On March 18, 2021 TAdviser , information came to the disposal that the Russian Internet the companies signed an open letter in which they expressed concern about the abuse of the dominant position in the search market by "" and Yandex supported the decision that FAS obliged the IT giant to eliminate privileges to promote its own services in this market. More. here

Cian.ru begins preparations for IPO

On January 21, 2021, it became known about the beginning of preparations for the IPO by Cian.ru. One of the largest Russian real estate announcement services may hold its initial public offering on the American stock exchange in 2022, said Dmitry Kryukov, partner of the Elbrus Capital investment fund (one of the main shareholders of Cian.ru).

He admits a valuation of the company of $1 billion in the near future. Kryukov announced this in a conversation with Bloomberg. The Cian.ru confirmed to TAdviser the plans for the listing.

Yes, Cian.ru really plans to go to IPO, and at the moment we are starting to prepare for this process, the press service of the service said.

Cian.ru prepares for IPO

They also pointed out the premature talk about the timing of the listing and other details, "since it depends not only on the company's plans."

According to the Cian.ru 's own data, the audience of the service by January 2021 is 19 million unique visitors per month, 2.5 million ads are posted on the portal. In the CIAN database there are more than 28 thousand offers with the rental of apartments in. To Moscow For comparison, there are Avito 22 thousand of them, owned by To Sberbank "" - DomClick 9.2 thousand, with "Yandex Movement" - 7.5 thousand. According to data, in SimilarWeb December 2020, the cian.ru site had 27.3 million visits, reports "."Kommersant

By January 2021, the market is quite expensive to evaluate various aggregators and marketplaces, so the placement of Cian.ru has a chance to be successful, says Timur Nigmatullin, investment manager of Otkritie Broker. However, Cian.ru has strong competitors in the person of Avito and Yandex.Real Estate and "monetization in such competitive conditions is difficult," he notes.

Maria Sukhanova, an analyst at BCS Global Markets, considers the main risk for Cian.ru to be heightened competition in the market, therefore, "the question is how much the company will be able to increase its share in such conditions."

2020

Buying a property search portal N1.ru

On December 23, 2020, the Cian.ru real estate search service in Russia announced the purchase of the company N1.ru. The seller in this transaction was HSD RN BV (part of Hearst Shkulev Group). Its participants did not disclose the financial component of the agreement. Read more here.

Plans to go IPO

One of the online real estate services Russia in Cian.ru intends to enter in about two years. IPOTo the businessman The general director of the company Maxim Melnikov told about this in an interview with "" in March 2020.

"There is such an idea. We, as a company, act as a "corporate brother." HeadHunter That is, part of our shareholders, Goldman Sachs and, Elbrus Capital also, HeadHunter shareholders. And this company in 2018 placed shares on. NASDAQ One way to increase liquidity for co-owners of Cian.ru is to enter public markets. To do this, you need to work for a couple more years, but the case is quite realistic, "Melnikov said.

According to him, the volume of the block of shares for public offering will depend on the liquidity of the market. "Typically, a package is offered less than the control, but sufficient to provide the necessary liquidity for securities in the secondary market. For example, a free float in the amount of $300-400 million, "- explained the general director of Cian.ru.

2014

According to LiveInternet, as of November 2014, the total monthly audience of Cian.ru and Realty.dmir.ru projects was 4 million unique users, EMLS.ru - 290 thousand unique users.

In December 2014, the direct investment fund advised by Elbrus Capital became the new shareholder of CIAN GROUP, the leader in the online real estate market in Russia. Cian.ru GROUP sold new shares, in addition, some existing shareholders sold part of their shares. The amount of the transaction and the share of the fund in CIAN GROUP were not disclosed. CIAN GROUP will direct the proceeds from the sale of shares to regional expansion, further development of the product and increased brand awareness.

Notes