Veon, the parent company of Kyivstar, has announced its intention to float the Ukrainian telecom giant on the Nasdaq stock exchange. This significant move follows a signed letter of intent (LOI) with the special purpose acquisition company (SPAC) Cohen Circle, aiming to combine their businesses and list Kyivstar on Nasdaq. This would make Kyivstar the first Ukrainian company to be listed in the US, marking a milestone in Ukraine’s telecom industry.
Why Kyivstar is Targeting a Nasdaq Listing
Veon’s decision to list Kyivstar on Nasdaq is driven by the desire to attract international investors. According to Veon CEO Kaan Terzioğlu, the move is an essential part of the company’s long-term growth strategy, with the aim to not only support Kyivstar’s development but also contribute to the rebuilding and economic growth of Ukraine. The listing will provide an opportunity to unlock value for Veon’s shareholders and position Kyivstar as a key player in the global telecom market.
The SPAC Approach: A Simpler Listing Process
Instead of opting for a traditional initial public offering (IPO), Veon has chosen the SPAC route for Kyivstar’s Nasdaq listing. This method, which involves merging with an already-listed SPAC, is seen as a more streamlined and quicker process compared to a standard IPO. Veon intends to complete the listing by the end of 2025, making it an ambitious yet feasible timeline.
The Impact of Kyivstar’s Listing on Ukraine’s Telecom Sector
Kyivstar’s listing could serve as a catalyst for further investment in Ukraine’s telecom industry, already seeing notable activity. In 2024, NJJ Holding, the investment firm of telecom mogul Xavier Niel, acquired Lifecell and Datagroup-Volia for $524.3 million, further highlighting investor interest in Ukraine’s telecom landscape.
With Kyivstar as the market leader, providing mobile services to 24 million customers, the company is expected to drive innovation and infrastructure development. This will likely encourage more foreign capital, not only in telecoms but also in other critical sectors of Ukraine’s economy.
Veon’s Support for Kyivstar: A Commitment to Ukraine’s Recovery
In a year marked by significant investment, Veon increased its stake in Kyivstar, committing $1 billion for infrastructure and network expansion over the next five years. This includes building new LTE base stations and upgrading existing infrastructure to provide 4G services to 95% of the population in Ukrainian-controlled areas. Kyivstar aims to extend 4G coverage to 98% of the population by 2026, further improving connectivity in the region.
Kyivstar’s Strategic Partnership with SpaceX’s Starlink
As part of its commitment to technological growth, Kyivstar has partnered with SpaceX subsidiary Starlink to offer direct-to-cell satellite connectivity. This partnership plays a crucial role in supporting Ukraine’s communications amid ongoing challenges from the Russian invasion. Through these investments, Kyivstar is reinforcing its position as a resilient and innovative telecom operator.
FAQ: Key Questions About Kyivstar’s Nasdaq Listing
1. What is a SPAC, and why is Veon using this method for Kyivstar’s listing?
A SPAC (Special Purpose Acquisition Company) is a company set up to raise capital through a public offering to acquire an existing business. Veon is using this route as it provides a faster and simpler way to list Kyivstar compared to a traditional IPO.
2. How will Kyivstar’s Nasdaq listing impact Ukraine’s telecom sector?
The listing is expected to attract international investors, which could lead to more investments in Ukraine’s telecom infrastructure and broader economy. It may also encourage further market competition and innovation.
3. What are Kyivstar’s current achievements in Ukraine’s telecom market?
Kyivstar serves 24 million customers and has expanded 4G coverage to 95% of the population in areas controlled by Ukraine. The company aims to reach 98% coverage by 2026.
4. Why is Kyivstar’s partnership with Starlink significant?
The collaboration with Starlink enables Kyivstar to provide satellite-based connectivity, which is crucial for maintaining communications in Ukraine amid the ongoing war.
