KYIV will be listed on the Nasdaq stock exchange: VEON will contribute to this
18 March 17:58
VEON, the global digital operator and parent company of Kyivstar, and Cohen Circle Acquisition Corp. I (“Cohen Circle”), a specialized asset acquisition company, today announced the signing of a business combination agreement aimed at indirectly listing Kyivstar, a leading electronic communications operator in Ukraine, on the Nasdaq Stock Market in the United States. This was reported by the press service of Kyivstar, Komersant ukrainskyi reports.
Upon completion of the business combination, Kyivstar Group Ltd. will become the parent company of Kyivstar and will be listed on the Nasdaq Stock Market under the ticker symbol KYIV.
VEON will own at least 80% of the issued and outstanding capital of Kyivstar Group immediately upon closing, which is expected to occur in Q3 2025 and is subject to Cohen Circle shareholder approval and other customary closing conditions.
At the closing, the estimated value of Kyivstar will be USD 2.21 billion.
VEON calls Kyivstar’s listing on the Nasdaq a historic step that will give U.S. and global investors the opportunity to participate not only in Kyivstar’s development but also in Ukraine’s economic growth.
How Kyivstar will try to attract investors
24 million fixed and mobile subscribers – this is the number of users the company currently serves.
The company has the largest communication infrastructure in Ukraine, including more than 48 thousand base stations and its own fiber-optic network of 44 thousand kilometers.
In addition to basic telecommunications services, Kyivstar offers digital solutions, including Big Data, industrial IoT, cloud services, and mobile financial services.
Kyivstar’s portfolio of digital services for customers also includes the medical platform Helsi with more than 28 million registered patients and the film and television platform Kyivstar TV.
Services for corporate customers include cloud solutions, cybersecurity and artificial intelligence solutions, and Kyivstar Tech, a software development business.
The company has strong growth potential, including the expansion of digital services and international partnerships, such as the implementation of Starlink’s Direct-to-Cell technology. Kyivstar is expected to launch Starlink Direct-to-Cell services with SMS and OTT messaging in the fourth quarter of 2025. The next stage will be voice and data services.
In January this year, VEON, the global digital operator, and Cohen Circle, a specialized asset acquisition company , announced the signing of a letter of intent to jointly conduct business with the aim of indirectly listing Kyivstar, VEON’s digital operator in Ukraine, on the Nasdaq Stock Exchange in the United States.
How Kyivstar goes public on the US stock exchange
A company usually goes public through an initial public offering (IPO). As explained by Ekonomichna Pravda, this is a process where the ownership of a business is transferred to a foreign company that issues shares and offers them to a wide range of investors.
However, private companies can be listed without following the classic IPO procedure. For this purpose, there is a mechanism called SPAC (Special Purpose Acquisition Company) – an exit through a “special purpose company”.
It is through one of them that Veon plans to bring Kyivstar to the Nasdaq stock exchange in the United States.
Veon has signed a letter of intent with Cohen Circle, an investment company. In 2015, it was founded by American lawyer and financier Betsy Cohen and her son Daniel. Cohen Circle specializes in creating and financing SPAC companies. One of them is Cohen Circle Acquisition Corp. which is traded on the Nasdaq and focuses on financing fintech and technology projects and has already raised more than $5 billion.
Why VEON is bringing Kyivstar to the stock exchange
In 2023, representatives of the Ukrainian authorities repeatedly stated that a share of Kyivstar’s corporate rights was one step away from nationalization. This was also reported by Ekonomichna Pravda.
As you know, in October 2023, the Shevchenkivskyi District Court arrested all corporate rights in Ukraine owned by the sanctioned oligarchs Friedman, Aven and Kosogov. The seized assets included, among other things, corporate rights in Kyivstar. Since then, passions have calmed down a bit.
Now, with Kyivstar’s shares set to be listed on the Nasdaq, it is almost impossible to repeat the nationalization scenario.
Another possible explanation for the plans to go public is that due to the NBU’s restrictions on martial law, the company’s profits have been blocked inside Ukraine for three years now. Kyivstar has been showing good financial results. For example, in 2024, the company managed to increase its net profit by 7.6% to UAH 11.3 billion.
“Veon shareholders are aware that Kyivstar has accumulated hundreds of millions of dollars that cannot be withdrawn from Ukraine due to the current restrictions. In such a situation, a deal through a SPAC becomes an attractive alternative for raising funds, depending on the needs within the group,” explains the source of the Economic Truth publication.
For its part, Veon’s press service reported that “the funds received will be used for general corporate needs, including investments, operations and balance sheet management.” They also assured that “the company has taken all necessary measures to ensure that no financial benefits are received by sanctioned persons related to Veon’s activities, including Kyivstar.”
The company also reaffirmed that Veon and Kyivstar will fulfill their commitments to invest $1 billion in the development of Ukraine in 2023-2027. In general, the company plans to increase Kyivstar’s core business by 10-13% annually, and new business lines by more than 50%.
