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Ukraine’s Telecom Giant Kyivstar Targets $50–200M in Historic Nasdaq Debut
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![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
Ukraine’s largest telecom operator, Kyivstar, aims to raise between $50 million and $200 million through a landmark stock market listing in New York this year, three sources familiar with the matter told Reuters on August 11.
Kyivstar is set to become the first Ukraine-based company to be listed on a US stock exchange, joining Nasdaq via fintech entrepreneur Betsy Cohen’s special purpose acquisition company Cohen Circle, thereby sidestepping some of the complexities of a traditional initial public offering.
Dubai-based VEON, Kyivstar’s parent company, has said the listing is expected by the third quarter of 2025 and that it will retain at least 80% of the issued and outstanding shares of the telecom business. According to the sources, VEON has already secured $52 million in non-redemption agreements with institutional investors—the minimum it expects to raise—with the total potentially reaching $200 million depending on redemptions.
According to Reuters, VEON Chief Executive Kaan Terzioglu said after last Thursday’s earnings report that the company had “extremely strong support” for the Kyivstar listing from US authorities, Ukraine, and the European Union. He described the listing as “the people’s IPO,” expressing hope that “investors around the world show their support for Ukraine.”
VEON, which exited the Russian market in 2023, regained its corporate rights in Kyivstar last year after a Kyiv court reversed the seizure of its stake due to the previous involvement of sanctioned Russian individuals.
Kyivstar, valued at $2.21 billion on a pro forma basis, is Ukraine’s leading mobile operator with 24 million subscribers. Its revenue and core profit have grown since the start of Russia’s invasion, withstanding cyberattacks and power outages during the war, Reuters reported.
Cohen Circle and Kyivstar shareholders are scheduled to hold separate meetings on Tuesday, August 12, to approve the planned listing, the final step before completing filings with the market regulator.
Shah Capital, VEON’s fourth-largest shareholder with a 6.7% stake, told Reuters in an emailed statement that the IPO can be a success “in light of increased pressure on Russia to settle the conflict.” Shah had previously urged VEON to proceed with the Kyivstar listing before the company made its final decision to list in the US, after initially considering London or Warsaw.
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According to Reuters, Edison Group equity analysts Nick Paton and Dan Ridsdale said the deal’s narrative centers on Ukraine’s postwar reconstruction and the critical role of digital infrastructure in that process. However, they cautioned that the move carries risks, particularly geopolitical ones.
“Though VEON has exited Russia, lingering concerns over legacy shareholder links and ongoing exposure to volatile jurisdictions may cap upside. Any re-emergence of reputational or compliance risks could reintroduce a governance discount,” Paton and Ridsdale noted.
Earlier, Kyivstar signed an agreement with Starlink, a division of SpaceX, to deploy the innovative Direct-to-Cell satellite communication technology.
According to a press release, Kyivstar plans to launch SMS and OTT messaging services using this technology in the fourth quarter of 2025.
