Kyivstar Prepares for Nasdaq IPO
The leading mobile operator in Ukraine, "Kyivstar", is set to secure funding ranging from $50 to $200 million during its listing on the Nasdaq stock exchange in New York this year.
According to information from Reuters, its parent company VEON has already secured $52 million through agreements with institutional investors, which is the minimum target for fundraising.
The listing is expected by the end of the third quarter of 2025, while VEON plans to retain at least 80% of its telecommunications business shares. The total amount of raised funds could reach up to $200 million, depending on stock buybacks.
"VEON hopes that Kyivstar's listing will ignite investor interest in Ukrainian assets ahead of the country's recovery," the report states.
VEON's CEO Kaan Terzioglu noted that the Kyivstar IPO enjoys substantial support from the governments of the US, Ukraine, and the EU, describing it as a "people's IPO" and expressing hope for global investor backing.
The agency also highlighted that Kyivstar, valued at $2.21 billion, is the leading mobile operator in Ukraine with 24 million subscribers. Its revenue and core profits have surged since the full-scale invasion, despite cyberattacks and power supply disruptions.
Analysts from Edison Group, Nick Payton and Dan Ridsdale, emphasized that the forthcoming deal is centered around Ukraine's post-war recovery and the essential role of digital infrastructure in this process, while also pointing out the associated risks.
"Although VEON exited the Russian market, concerns regarding ties with former shareholders and dependence on unstable jurisdictions may limit growth potential," the Edison Group analysts stated. Should the IPO be successful, Kyivstar would become the first Ukrainian company to be listed on an American exchange.
It is worth noting that VEON was founded in Moscow in 1992 as "VimpelCom" and became one of the first mobile operators in Russia. Over time, the company expanded its operations in other countries, including Ukraine, Pakistan, Kazakhstan, and Bangladesh, serving approximately 160 million customers. In Ukraine, VEON operates under the "Kyivstar" brand. According to Bloomberg, about 48% of VEON's shares are owned by LetterOne Investment Holdings, founded by Russian billionaire Mikhail Fridman, who is under sanctions by the EU and the UK.
