By Gianluca Lo Nostro
(Reuters) -Ukraine’s leading mobile operator Kyivstar is moving ahead with its planned U.S. listing, its parent VEON said on Tuesday, even as President Donald Trump’s chaotic trade policy knocks confidence on Wall Street.
Kyivstar has been assigned a pro-forma valuation of $2.21 billion ahead of the initial public offering (IPO) in New York, VEON said in a statement.
VEON owns leading telecoms and fintech brands in six countries including Pakistan and Ukraine, with the latter being its second biggest market accounting for a third of its core profit.
The decision to move forward with the listing stands out as a test for Ukraine and its economy amid growing fears of a U.S. pullback from the war-torn country.
Tensions between Kyiv and Washington erupted last month after Trump and Ukrainian president Volodymyr Zelenskiy clashed in the White House, delaying the signing of a much-debated minerals deal.
Kyivstar will be the first Ukrainian company listed in the United States once fintech entrepreneur Betsy Cohen’s special-purpose acquisition company (SPAC) completes the merger for the IPO.
The combination and the subsequent listing are expected in the third quarter of 2025. VEON will own a minimum of 80% of the issued and outstanding equity of Kyivstar, it said.
“We believe that Kyivstar’s strong financial profile, visionary strategy and robust governance structure … will be appealing to international investors,” VEON’s CEO Kaan Terzioglu said in the statement.
Shah Capital, an activist investor holding a 6.7% stake in VEON, had previously suggested Warsaw or London as IPO venues for Kyivstar before urging VEON to consider Nasdaq.
Terzioglu first announced Kyivstar might be listed in the U.S. in November.
After completing its exit from Russia in 2023, VEON has strengthened its U.S. ties, including as part of its $1 billion investment plan in Ukraine through 2027.
In 2023, former U.S. Secretary of State Mike Pompeo, who served under the first Trump administration, joined the board of Kyivstar.
The group has an exclusive partnership with Elon Musk’s Starlink to develop and provide direct-to-cell connectivity in Ukraine.
(Reporting by Gianluca Lo Nostro in Gdansk, editing by Milla Nissi)
