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Telecoms group VEON mulls U.S. IPO for Ukraine's Kyivstar

Telecoms group VEON is considering a going public (IPO) for its Ukrainian unit Kyivstar in the U.S. as early as next year, CEO Kaan Terzioglu said on Thursday.

We have not made those decisions yet, however we are dedicated to looking into IPOs of our local properties. And clearly, Kyivstar is one of those properties which might be in the line of this procedure, Terzioglu told Reuters in an interview.

Ought to the IPO go through, Kyivstar would become the first Ukrainian business to be listed in the United States.

VEON has actually not had any conversations with Ukrainian officials on the subject, as the process is still in the early phases, Terzioglu stated.

He had actually formerly meant a prospective listing in Warsaw or London.

For Ukraine, I think the regional IPO in the Ukrainian market probably is a little bit more longer term problem than having an IPO in an international market, the CEO stated.

The remarks come after Nasdaq signed a collaboration with the Ukrainian government in February to support the advancement of Ukrainian capital markets.

In October, activist investor Shah Capital, which owns a. 6.75% stake in VEON, prompted the group to list Kyivstar on Nasdaq. as a way to unfreeze ownership shares.

In 2023, a court in Kyiv froze 47.85% of Kyivstar's. corporate rights due to the previous involvement of sanctioned. Russian people in VEON.

INVESTMENTS IN UKRAINE'S ENERGY SECTOR

VEON reiterated its commitment to invest $1 billion (950. million euros) in Ukraine's digital facilities by 2027.

We have practically half a billion dollars of money in Ukraine,. so we will continue investing, Terzioglu stated.

Do not be amazed even if we go and purchase assets in. Ukraine, he added, stating VEON had currently identified some. prospects in energy generation and circulation, including. solar energy.

When asked if Donald Trump's re-election may impact VEON's. operations in Ukraine, Terzioglu stated his financial and energy. policies were extremely favorable from a frontier markets. point of view like VEON's.

Last year, former U.S. Secretary of State Mike Pompeo, who. served under the first Trump administration, joined the board of. Kyivstar.

VEON, which just recently moved its headquarters to Dubai and. will complete its Amsterdam delisting on Nov. 25 to be solely. listed in the U.S., is also dealing with a potential listing of. its Pakistani unit Jazz. Terzioglu declined to offer a. specific timeline for the decision.

(source: Reuters)