Global digital operator Veon and Cohen Circle Acquisition Corp, a special purpose acquisition company, have announced the signing of a business combination agreement that will result in the listing of Ukraine operator Kyivstar on the Nasdaq Stock Market in the United States.
Kyivstar is Ukraine’s largest digital operator. It serves 24 million customers with fixed and mobile communication services. Its consumer digital service portfolio includes healthcare platform Helsi, with more than 28 million registered patients, and streaming platform Kyivstar TV, with two million monthly active users, while enterprise services include cloud, cybersecurity and AI solutions, and the software development business Kyivstar Tech.
Veon says Kyistar has strong growth potential, including expansion into digital services and international partnerships such as Starlink direct-to-cell deployment.
Indeed, as Reuters points out, Veon, which owns leading telecoms and fintech brands in six countries, has an exclusive partnership with Starlink to develop and provide direct-to-cell connectivity in Ukraine.
It’s probably not a major surprise to note that this is expected to be the only US-listed pure play Ukrainian investment opportunity. indeed, Kyivstar will be the first Ukrainian company listed in the US once Cohen Circle completes the merger for the initial public offering (IPO).
What may be surprising is the apparent confidence in the US market shown by this IPO, despite investor concerns over US tariffs and the prospect of a US recession and, of course, the ongoing war in Ukraine.
That said Kyivstar has been assigned a pro-forma valuation of US$2.21 billion ahead of the IPO in New York, Veon said in a statement.
Reuters say that, after completing its exit from Russia in 2023, Veon has strengthened its US ties. It already has in place plans to invest over US$1 billion in Ukraine over the 2023-2027 period.
