Russian-Backed Software Company Luxoft Files for U.S. IPO

Luxoft Holding Inc., a Russian-backed software developer providing services to Deutsche Bank AG (DB), UBS AG (UBSN) and Boeing Co. (BA), filed for an initial public offering in New York.

The company is preparing for a $80 million offering, according to a regulatory filing yesterday. The amount is a placeholder that may change. UBS, Credit Suisse Group AG (CSGN), JPMorgan Chase & Co. (JPM), VTB Capital (VTBR) and Cowen & Co. are managing the sale.

Luxoft is a unit of Moscow-based IBS Group Holding Ltd. (IBSG), which is traded in Germany. IBS President and main shareholder Anatoly Karachinsky said in November he sought to spin off Luxoft, which sells to global corporations, to unlock value for shareholders who aren’t interested in the Russian part of the group’s business.

The idea of a Luxoft IPO was inspired by Epam Systems Inc. (EPAM), a software developer with roots in the Commonwealth of Independent States that sold shares in New York last year, according to Karachinsky. Epam shares almost doubled since the IPO, valuing the company at $1.07 billion.

Luxoft, based in Zug, Switzerland, increased revenue 16 percent for the year ended March 31 to $315 million, while net income was $38 million, according to the filing.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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