Kyivstar Plans to Go Public on Nasdaq
The largest Ukrainian mobile operator, "Kyivstar", plans to raise between $50 million and $200 million during its initial public offering (IPO) on the Nasdaq stock exchange in New York this year.
According to Reuters, VEON, the parent company of Kyivstar, has already secured $52 million in agreements with institutional investors as the minimum target amount.
The listing is expected to take place by the end of the third quarter of 2025, with VEON retaining at least 80% ownership of the telecommunications business. The maximum amount that could be raised may reach $200 million depending on the stock buyback.
"VEON hopes that Kyivstar's listing will boost investor interest in Ukrainian assets ahead of the country's recovery," the statement said.
VEON's CEO Kaan Terzioglu stated following the recent financial report that Kyivstar's IPO has received exceptionally strong backing from the U.S., Ukrainian, and EU authorities. He referred to it as a "people's IPO", expressing hope that investors worldwide would support Ukraine.
The agency also noted that Kyivstar, valued at $2.21 billion, is the leading mobile operator in Ukraine with 24 million subscribers, and its revenue and core profit have surged since the onset of the full-scale invasion, despite cyberattacks and power supply disruptions during the war.
Edison Group analysts Nick Peyton and Dan Reedsdale pointed out that the upcoming deal is centered around Ukraine's post-war recovery and the role of digital infrastructure in this process, while also emphasizing that this move is not without risks.
"While VEON has exited the Russian market, concerns regarding ties to former shareholders and dependence on unstable jurisdictions may limit growth potential," said the Edison Group analysts. If the IPO is successful, Kyivstar will become the first Ukrainian company listed on the American stock exchange.
It is worth noting that VEON was founded in Moscow in 1992 under the name "VimpelCom". It was one of the first Russian mobile operators. Later, the company expanded its operations to other countries, including Ukraine, Pakistan, Kazakhstan, and Bangladesh, now serving around 160 million customers. In Ukraine, VEON owns the brand "Kyivstar". According to Bloomberg, approximately 48% of VEON's shares are owned by LetterOne Investment Holdings, founded by Russian billionaire Mikhail Fridman, who is under sanctions from the EU and the UK.
