Telecoms giant VEON has announced its plan to float its Ukrainian unit, Kyivstar, on the Nasdaq stock exchange, marking a historic milestone as the first Ukrainian company to pursue a U.S. listing.
The Dubai-based telecom group has signed a letter of intent with Cohen Circle to combine their businesses, aiming to indirectly list Kyivstar through a Special Purpose Acquisition Company (SPAC). This would make Kyivstar the first Ukrainian firm to be listed on a U.S. exchange. VEON, which delisted from Amsterdam in 2024, currently holds its sole listing on Nasdaq..
A SPAC was selected for the listing as it offers a more straightforward path than a traditional initial public offering (IPO), the source explained. VEON expects to finalize an agreement with Cohen Circle, a Nasdaq-listed entity, by the second quarter of 2025.
The decision to list in the U.S. rather than in Europe or Asia was driven by the fact that the U.S. stock market is the world’s fastest-growing, providing a gateway to international investors, according to the source. VEON operates in both telecoms and fintech in various regions, including Europe, Asia, and the Middle East.
Kyivstar, Ukraine’s largest mobile operator, plays a significant role in the country’s telecom sector, which has been a target for cyberattacks, particularly from Russian hackers. Despite the challenges, the Ukrainian telecom market has seen growing interest from international investors. Last year, French billionaire Xavier Niel, founder of Iliad, acquired Lifecell, the country’s third-largest mobile provider, in a deal valued at over $500 million.
The planned U.S. listing follows Kyivstar’s recent partnership with Elon Musk’s Starlink, aiming to deliver satellite-based mobile connectivity in Ukraine later this year amidst the ongoing war.
Both Ukrainian and U.S. authorities have expressed strong support for the project, viewing it as a crucial step in rebuilding Ukraine’s telecom infrastructure and boosting services for both consumers and businesses. VEON has also committed to investing $1 billion into Ukraine’s digital infrastructure by 2027.
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