Shares in Ukrainian mobile operator Kyivstar will start trading in New York today hoping that peace talks to end the devastating war in the country will significantly boost the company’s value.
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Chief executive officer Oleksandr Komarov said ahead of the Nasdaq listing that the summit between President Trump and Russian leader Vladimir Putin in Alaska, scheduled for August 15th, would help drive investment into Ukraine if an end to the three-year war is found.
Invest in Recovery
“We will be the best asset for the international investment community to invest in Ukraine, to invest in the Ukrainian recovery, to invest in the Ukrainian support,” Komarov said.
Komarov said the company chose Nasdaq, where its Dubai-based parent VEON (VEON) is also listed, over London or Warsaw because it is even more important to “strengthen the link between the United States and Ukraine rather than between Ukraine and Europe.”
VEON shares were up 1.6% in pre-market trading.
The company has also strengthened its U.S. ties during the conflict, appointing former U.S. Secretary of State Mike Pompeo to its board and signing a deal with Elon Musk’s Starlink for satellite services.
Kyivstar, which has been given a pro forma valuation of $2.3 billion, carried out the listing by merging with fintech entrepreneur Betsy Cohen’s Cohen Circle special purpose acquisition company (SPAC).
The company raised $178 million, confirming earlier reports that it expected up to $200 million. VEON will retain a majority stake in the mobile operator.
People’s IPO
The company has previously stated that it has had extremely strong support for the Kyivstar listing from U.S. authorities, Ukraine and the European Union.
Indeed, it has described the listing as “the people’s IPO”, hoping that investors around the world would show their support for Ukraine.
Kyivstar is the market-leading mobile operator in Ukraine with 24 million subscribers. Analysts agreed that the narrative around the deal was built around Ukraine’s postwar reconstruction and digital infrastructure’s role in that recovery.
However, investors will also likely question the strength of that recovery and the likelihood of any peace deal between Ukraine and Russia holding over the long-term.
What Other IPOs are Upcoming?
We have rounded up future IPOs in our IPO Calendar.
