Kyivstar set for Nasdaq listing valued at $2.2B

Kyivstar set for Nasdaq listing valued at $2.

• Veon plans to list Kyivstar on the Nasdaq exchange under the symbol ‘KYIV’.
• The deal involves merging with a US-based SPAC and aims to close in Q3.

What happened: Veon prepares Kyivstar for Nasdaq listing

Veon, a leading international telecommunications group, is preparing to list its Ukrainian subsidiary, Kyivstar, on the Nasdaq exchange. Under the agreement, Veon will merge Kyivstar with US-based special purpose acquisition company (SPAC) Cohen Circle Acquisition Corp. This merger will result in Cohen Circle issuing new shares to Veon, making Kyivstar a wholly-owned subsidiary. The deal is expected to close in the third quarter of this year, paving the way for Kyivstar to be listed under the stock symbol ‘KYIV’.

Kyivstar has been valued at $2.21 billion, reflecting its strong financial profile and growth potential. Veon CEO Kaan Terzioglu highlighted Kyivstar’s consistent performance and ability to turn challenges into growth opportunities. The listing is expected to make investing in Kyivstar more accessible to international investors. Veon is also investing $1 billion into Kyivstar to modernise its infrastructure, expand coverage, and improve network resilience. Kyivstar is further investing in satellite direct-to-cell services and Open RAN technology in partnership with Rakuten.

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Why it’s important

The planned Nasdaq listing of Kyivstar represents a significant milestone for both the company and international investors. Kyivstar’s strong financial profile, with an adjusted EBITDA of $515 million and an EBITDA margin of 56%, makes it an attractive investment opportunity. The company has $429 million in cash and no external debt, with a combined fixed and mobile customer base of 24 million. Despite the challenges posed by the ongoing conflict in Ukraine, Kyivstar has demonstrated resilience and is positioned for growth in the post-war rebuilding phase.

The listing will also mark a historic moment for Ukraine’s economic future, as Kyivstar will be the only purely Ukrainian stock listed on a major US exchange. This scarcity value, combined with the company’s robust financials, is expected to appeal to international investors seeking exposure to Ukraine’s digital services market. However, the listing also comes with inherent risks, given the ongoing geopolitical uncertainties and potential market volatility. Investors will need to weigh the potential upside of Kyivstar’s growth prospects against the risks associated with the current geopolitical environment.