Yandex shares rise more than 38 percent on first day

NEW YORK (Reuters) - Shares of Russian Internet company Yandex NV rose more than 38 percent in early trading on the Nasdaq as investors piled into the Internet business's biggest U.S. initial public offering since Google Inc.

The shares rose to $34.65 in early trading, above the $25 IPO price.

Russia's most popular search engine raised $1.3 billion, or 19 percent more than expected, in an initial public offering on Monday by selling 52.2 million shares for $25 each.

Morgan Stanley, Deutsche Bank Securities and Goldman Sachs & Co led the underwriters on the offering.

(Reporting by Clare Baldwin. Editing by Robert MacMillan)