Latest news with #VEON
Time of India
13 hours ago
- Business
- Time of India
Ukraine's Kyivstar to raise up to $200 million in landmark US listing, sources say
By Gianluca Lo Nostro and Leo Marchandon Ukraine's biggest telecoms operator Kyivstar expects 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. Kyivstar will become the first Ukraine-based company listed on a U.S. stock exchange when it joins Nasdaq via fintech entrepreneur Betsy Cohen 's special purpose acquisition company (SPAC) Cohen Circle, thereby avoiding some of the complexities of a traditional initial public offering. The Ukrainian company's Dubai-based parent VEON has said the listing was expected by the third quarter of 2025 and that it will retain a minimum of 80% of the issued and outstanding shares of the telecoms business. VEON has already secured $52 million in non-redemption agreements with institutional investors, representing the minimum it expects to raise, the sources said. The maximum could reach $200 million depending on redemptions. LEADING UKRAINE'S RECONSTRUCTION While U.S. President Donald Trump continues his efforts to end the Russian war in Ukraine and Ukrainian counterpart Volodymyr Zelenskiy enlists support from Europe and NATO, VEON hopes the Kyivstar listing will help to stoke investor appetite for Ukrainian assets ahead of the country's reconstruction. VEON Chief Executive Kaan Terzioglu said after the company reported earnings last Thursday that it had extremely strong support for the Kyivstar listing from U.S. authorities, Ukraine and the European Union. He dubbed the listing "the people's IPO", expressing his hope that investors around the world show their support for Ukraine. Telecoms group VEON, which exited the Russian market in 2023, had its corporate rights in Kyivstar restored by a Kyiv court last year after they had been seized over the previous involvement of sanctioned Russian individuals. Kyivstar, which has been given a pro forma valuation of $2.21 billion (1.89 billion euros), is the market-leading mobile operator in Ukraine with 24 million subscribers. Its revenue and core profit have surged since Russia's invasion, weathering cyberattacks and power outages during the conflict. ACTIVIST INVESTOR SUPPORT Cohen Circle and Kyivstar shareholders will hold separate meetings on Tuesday to vote on the planned listing, the final step before completing filings with the market regulator. Activist investor 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 publicly urged VEON to pursue the Kyivstar listing before the telecoms group made the final decision to float its Ukrainian unit in the U.S. despite previous hints at London or Warsaw as possible venues. Edison Group equity analysts Nick Paton and Dan Ridsdale said the deal's narrative is built around Ukraine's postwar reconstruction and digital infrastructure's role in that recovery. However, the move is not immune to risks, particularly geopolitical ones, they said. "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 said in a note.
Yahoo
13 hours ago
- Business
- Yahoo
Exclusive-Ukraine's Kyivstar to raise up to $200 million in landmark US listing, sources say
By Gianluca Lo Nostro and Leo Marchandon (Reuters) -Ukraine's biggest telecoms operator Kyivstar expects 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. Kyivstar will become the first Ukraine-based company listed on a U.S. stock exchange when it joins Nasdaq via fintech entrepreneur Betsy Cohen's special purpose acquisition company (SPAC) Cohen Circle, thereby avoiding some of the complexities of a traditional initial public offering. The Ukrainian company's Dubai-based parent VEON has said the listing was expected by the third quarter of 2025 and that it will retain a minimum of 80% of the issued and outstanding shares of the telecoms business. VEON has already secured $52 million in non-redemption agreements with institutional investors, representing the minimum it expects to raise, the sources said. The maximum could reach $200 million depending on redemptions. LEADING UKRAINE'S RECONSTRUCTION While U.S. President Donald Trump continues his efforts to end the Russian war in Ukraine and Ukrainian counterpart Volodymyr Zelenskiy enlists support from Europe and NATO, VEON hopes the Kyivstar listing will help to stoke investor appetite for Ukrainian assets ahead of the country's reconstruction. VEON Chief Executive Kaan Terzioglu said after the company reported earnings last Thursday that it had extremely strong support for the Kyivstar listing from U.S. authorities, Ukraine and the European Union. He dubbed the listing "the people's IPO", expressing his hope that investors around the world show their support for Ukraine. Telecoms group VEON, which exited the Russian market in 2023, had its corporate rights in Kyivstar restored by a Kyiv court last year after they had been seized over the previous involvement of sanctioned Russian individuals. Kyivstar, which has been given a pro forma valuation of $2.21 billion (1.89 billion euros), is the market-leading mobile operator in Ukraine with 24 million subscribers. Its revenue and core profit have surged since Russia's invasion, weathering cyberattacks and power outages during the conflict. ACTIVIST INVESTOR SUPPORT Cohen Circle and Kyivstar shareholders will hold separate meetings on Tuesday to vote on the planned listing, the final step before completing filings with the market regulator. Activist investor 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 publicly urged VEON to pursue the Kyivstar listing before the telecoms group made the final decision to float its Ukrainian unit in the U.S. despite previous hints at London or Warsaw as possible venues. Edison Group equity analysts Nick Paton and Dan Ridsdale said the deal's narrative is built around Ukraine's postwar reconstruction and digital infrastructure's role in that recovery. However, the move is not immune to risks, particularly geopolitical ones, they said. "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 said in a note. (1 euro = $1.1670) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
13 hours ago
- Business
- Reuters
Exclusive: Ukraine's Kyivstar to raise up to $200 million in landmark US listing, sources say
Aug 11 (Reuters) - Ukraine's biggest telecoms operator Kyivstar expects 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. Kyivstar will become the first Ukraine-based company listed on a U.S. stock exchange when it joins Nasdaq via fintech entrepreneur Betsy Cohen's special purpose acquisition company (SPAC) Cohen Circle (CCIR.O), opens new tab, thereby avoiding some of the complexities of a traditional initial public offering. The Ukrainian company's Dubai-based parent VEON has said the listing was expected by the third quarter of 2025 and that it will retain a minimum of 80% of the issued and outstanding shares of the telecoms business. VEON has already secured $52 million in non-redemption agreements with institutional investors, representing the minimum it expects to raise, the sources said. The maximum could reach $200 million depending on redemptions. While U.S. President Donald Trump continues his efforts to end the Russian war in Ukraine and Ukrainian counterpart Volodymyr Zelenskiy enlists support from Europe and NATO, VEON hopes the Kyivstar listing will help to stoke investor appetite for Ukrainian assets ahead of the country's reconstruction. VEON Chief Executive Kaan Terzioglu said after the company reported earnings last Thursday that it had extremely strong support for the Kyivstar listing from U.S. authorities, Ukraine and the European Union. He dubbed the listing "the people's IPO", expressing his hope that investors around the world show their support for Ukraine. Telecoms group VEON, which exited the Russian market in 2023, had its corporate rights in Kyivstar restored by a Kyiv court last year after they had been seized over the previous involvement of sanctioned Russian individuals. Kyivstar, which has been given a pro forma valuation of $2.21 billion (1.89 billion euros), is the market-leading mobile operator in Ukraine with 24 million subscribers. Its revenue and core profit have surged since Russia's invasion, weathering cyberattacks and power outages during the conflict. Cohen Circle and Kyivstar shareholders will hold separate meetings on Tuesday to vote on the planned listing, the final step before completing filings with the market regulator. Activist investor 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 publicly urged VEON to pursue the Kyivstar listing before the telecoms group made the final decision to float its Ukrainian unit in the U.S. despite previous hints at London or Warsaw as possible venues. Edison Group equity analysts Nick Paton and Dan Ridsdale said the deal's narrative is built around Ukraine's postwar reconstruction and digital infrastructure's role in that recovery. However, the move is not immune to risks, particularly geopolitical ones, they said. "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 said in a note. (1 euro = $1.1670)
Yahoo
3 days ago
- Business
- Yahoo
VEON Ltd (VEON) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points VEON Ltd (NASDAQ:VEON) reported a 5.9% year-on-year increase in revenues in US dollars, with a 13.2% growth in EBITDA. The company revised its 2025 outlook, expecting local currency revenue growth between 13% to 15% and EBITDA growth between 14% to 16%. Direct digital revenues grew by 57% year-on-year in dollar terms, now contributing 16.5% of total group revenues. VEON Ltd (NASDAQ:VEON) completed the third phase of its $100 million share buyback program, repurchasing close to 3% of its shares. The company enhanced its financial flexibility with a $200 million private bond issuance and successfully repaid bond maturities in April and June 2025. Negative Points VEON Ltd (NASDAQ:VEON) expects a non-cash charge of $150 to $200 million in the third quarter due to transactions like the sale of Kyrgyzstan operations. The company faces challenges in increasing 4G adoption in certain markets, such as Ukraine, where penetration remains stable. Weighted average inflation across VEON Ltd (NASDAQ:VEON)'s markets increased to 8.7% in the second quarter, posing a potential risk to cost management. The company continues to carry a 'going concern' language in its financial statements, although it expects to address this by the end of the year. VEON Ltd (NASDAQ:VEON) faces geopolitical and macroeconomic volatility, which could impact its operations and financial performance. Q & A Highlights Warning! GuruFocus has detected 8 Warning Signs with VEON. Q: Can you explain the technical process of how the proceeds from the sale of Jazz will be fed up to the holding company? Also, what should we expect in the third quarter numbers regarding the SPAC for the listing of Kiev Star? A: (Burak Ozer, CFO) The proceeds will be upstreamed to the holding company in 20 months through dividends, enabling us to release reserves and equity. Regarding the SPAC, the impact will be calculated based on the closing price of the stock on the first trading day, affecting the valuation of the assets and shares used for the purchase. Q: What are your strategies to drive 4G adoption in markets like Ukraine, where it remains stable, and how does 4G adoption impact your digital revenues? A: (Kan Tarviolu, CEO) We focus on 4G for all, not 5G for a few, with 68% of our customer base on 4G. In markets like Pakistan and Bangladesh, there are still many feature phone users, presenting growth opportunities. Our strategy includes increasing 4G coverage and quality, and offering smartphones preloaded with our digital services, as seen in Kazakhstan. Q: How do you plan to unlock the valuation of your telecom and digital businesses, given their growth potential? A: (Kan Tarviolu, CEO) We aim to surpass 20% of total revenues from direct digital revenues before considering financial engineering options like tracking stocks. We plan to consolidate financial services, entertainment, and other digital businesses under umbrellas for clearer communication of revenue values. Q: How do you see AI impacting markets with lower labor costs and digital service penetration compared to developed countries? A: (Kan Tarviolu, CEO) In emerging markets, advanced technologies like AI are adapted creatively. We focus on augmented intelligence to enhance skills, such as making doctors better. Our value proposition will shift from selling gigabytes to offering services that improve customers' lives, supported by local language AI models and super apps. Q: What is your strategy for monetizing VEON's fintech assets, particularly Jazz Cash, given the market's undervaluation of these assets? A: (Kan Tarviolu, CEO) Jazz Cash, along with Mobilink Microfinance Bank, handles significant transactions and mobile payments in Pakistan. We are patient in developing the business's value before crystallizing it. We have interested parties but aim to ensure the business's growth is well-placed before moving forward with monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
VEON Ltd (VEON) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points VEON Ltd (NASDAQ:VEON) reported a 5.9% year-on-year increase in revenues in US dollars, with a 13.2% growth in EBITDA. The company revised its 2025 outlook, expecting local currency revenue growth between 13% to 15% and EBITDA growth between 14% to 16%. Direct digital revenues grew by 57% year-on-year in dollar terms, now contributing 16.5% of total group revenues. VEON Ltd (NASDAQ:VEON) completed the third phase of its $100 million share buyback program, repurchasing close to 3% of its shares. The company enhanced its financial flexibility with a $200 million private bond issuance and successfully repaid bond maturities in April and June 2025. Negative Points VEON Ltd (NASDAQ:VEON) expects a non-cash charge of $150 to $200 million in the third quarter due to transactions like the sale of Kyrgyzstan operations. The company faces challenges in increasing 4G adoption in certain markets, such as Ukraine, where penetration remains stable. Weighted average inflation across VEON Ltd (NASDAQ:VEON)'s markets increased to 8.7% in the second quarter, posing a potential risk to cost management. The company continues to carry a 'going concern' language in its financial statements, although it expects to address this by the end of the year. VEON Ltd (NASDAQ:VEON) faces geopolitical and macroeconomic volatility, which could impact its operations and financial performance. Q & A Highlights Warning! GuruFocus has detected 8 Warning Signs with VEON. Q: Can you explain the technical process of how the proceeds from the sale of Jazz will be fed up to the holding company? Also, what should we expect in the third quarter numbers regarding the SPAC for the listing of Kiev Star? A: (Burak Ozer, CFO) The proceeds will be upstreamed to the holding company in 20 months through dividends, enabling us to release reserves and equity. Regarding the SPAC, the impact will be calculated based on the closing price of the stock on the first trading day, affecting the valuation of the assets and shares used for the purchase. Q: What are your strategies to drive 4G adoption in markets like Ukraine, where it remains stable, and how does 4G adoption impact your digital revenues? A: (Kan Tarviolu, CEO) We focus on 4G for all, not 5G for a few, with 68% of our customer base on 4G. In markets like Pakistan and Bangladesh, there are still many feature phone users, presenting growth opportunities. Our strategy includes increasing 4G coverage and quality, and offering smartphones preloaded with our digital services, as seen in Kazakhstan. Q: How do you plan to unlock the valuation of your telecom and digital businesses, given their growth potential? A: (Kan Tarviolu, CEO) We aim to surpass 20% of total revenues from direct digital revenues before considering financial engineering options like tracking stocks. We plan to consolidate financial services, entertainment, and other digital businesses under umbrellas for clearer communication of revenue values. Q: How do you see AI impacting markets with lower labor costs and digital service penetration compared to developed countries? A: (Kan Tarviolu, CEO) In emerging markets, advanced technologies like AI are adapted creatively. We focus on augmented intelligence to enhance skills, such as making doctors better. Our value proposition will shift from selling gigabytes to offering services that improve customers' lives, supported by local language AI models and super apps. Q: What is your strategy for monetizing VEON's fintech assets, particularly Jazz Cash, given the market's undervaluation of these assets? A: (Kan Tarviolu, CEO) Jazz Cash, along with Mobilink Microfinance Bank, handles significant transactions and mobile payments in Pakistan. We are patient in developing the business's value before crystallizing it. We have interested parties but aim to ensure the business's growth is well-placed before moving forward with monetization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
