VEON Takes Bold Step towards Listing Kyivstar in the US
In a groundbreaking move, telecoms giant VEON is pushing forward with plans to list its Ukrainian unit Kyivstar on the US market, marking a historic first for a Ukrainian company. This strategic decision is expected to open doors to international investors and pave the way for rebuilding Ukraine’s telecoms infrastructure.
A New Chapter for Kyivstar
VEON has signed a letter of intent with Cohen Circle, a Nasdaq-listed company, to combine their businesses and indirectly list Kyivstar on the US exchange. This move is expected to be completed by the end of the year through a special purpose acquisition company (SPAC), a simpler and more efficient process than a traditional IPO.
Why the US?
VEON has chosen the US over Europe and Asia, where it operates its fintech and telecom brands, due to its reputation as the world’s fastest-growing stock market. This listing will provide Kyivstar with access to a vast pool of international investors, further solidifying its position as Ukraine’s leading mobile operator.
Ukraine’s Telecom Market Opens Up
The Ukrainian telecom market, a strategic sector often targeted by Russian hackers, has been gradually opening up to international investments. Last September, French billionaire Xavier Niel acquired Lifecell, Ukraine’s third-largest mobile provider, for over $500 million. This trend is expected to continue, with Kyivstar’s planned US listing being a significant step forward.
Partnership with Starlink
Kyivstar’s partnership with Elon Musk’s Starlink, announced last December, will provide direct-to-cell satellite connectivity in Ukraine later this year. This collaboration is a testament to the company’s commitment to rebuilding Ukraine’s telecoms infrastructure and providing innovative services to its customers.
Government Support
Ukrainian and US authorities have been highly supportive of the listing project, recognizing its potential to drive growth and development in Ukraine’s telecoms sector. VEON has pledged to invest $1 billion in Ukraine’s digital infrastructure by 2027, further underscoring its commitment to the region.
A Bright Future Ahead
As VEON moves forward with its plans to list Kyivstar in the US, the company is poised to make a significant impact on Ukraine’s telecoms landscape. With its sights set on rebuilding infrastructure and providing cutting-edge services, Kyivstar is well-positioned to thrive in the years to come.
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