Kyivstar shares up 20% since market debut, further growth potential seen – Kyivstar president
The valuation of Kyivstar Group Ltd., which owns Ukraine's largest mobile operator Kyivstar, has risen by about 20%, or $600–700 million, since its merger with SPAC company Cohen Circle and subsequent listing, and the company has further growth potential, Kyivstar Group and Kyivstar President Oleksandr Komarov said.
"In my deep conviction, our business remains significantly undervalued. There are two big factors here. First, the valuation reflects a company in a country at war – and the war will end. Second, we are still mostly viewed as a telecom operator, while Kyivstar is a digital services operator with a telecom license," Komarov told reporters on August 29 during a Nasdaq opening bell ceremony with Kyivstar and Ukrainian government officials.
He noted that in the second quarter of 2025, revenues from digital services – including Uklon, Helsi, big data, cloud services, and Kyivstar TV – already accounted for more than 10% of the company's total revenue.
"Every business we develop in the digital environment grows by at least 50% year-over-year. Some are growing 100%, even 200% annually," Komarov said.
Kyivstar's current market capitalization is about $2.8 billion, compared with roughly $4.2 billion for its parent company VEON, he added.
On August 15, Kyivstar Group Ltd. announced the start of trading on Nasdaq following the completion of all required procedures with Cohen Circle.
"These past two weeks, with Kyivstar now part of the international market, have shown that even during war it is possible to grow, to create new services, to generate value for all stakeholders – customers, shareholders – and thereby to increase company capitalization," Komarov said.
He cited two independent analyst assessments: one forecasts the stock will reach $14 in 12 months, the other $19.8, compared with $12.43 at close of trading on Friday, August 29.
Kyivstar's revenue/EBITDA multiple is about 4, which Komarov said is at the lower end of valuations for Eastern European operators.
"Given the current situation, and the deals in Ukraine's telecom sector in recent years, the outlook looks quite optimistic," he concluded.
Komarov said the company has set up a new expanded supervisory board of 10 members, chaired by VEON CEO Kaan Terzioglu.
Regarding Kyivstar's Dubai office, opened in connection with the listing, he said about 10 people will work there, handling legal and related matters.
Asked about dividend payments, Komarov reminded that possible payouts for 2023–2024 are restricted by the National Bank of Ukraine to EUR 1 million per month. "Therefore, Kyivstar will decide on dividends once those restrictions are lifted," he said.
The company currently holds around $400 million on its accounts, which is being used for investment.
"I'm using last year's figure, but I can say this year's will be significantly higher. We invested about 26% of our revenue in 2024, more than $200 million," Komarov said.
According to Nasdaq, on its first day of trading under the ticker KYIV, Kyivstar's share price fell 7.4% to $11.52, valuing the company at $2.437 billion.
VEON's stake in Kyivstar dropped from 100% to 89.6% after the SPAC merger, which raised $178 million, including investments from institutional partners Helikon and Clearline.
Kyivstar serves almost 23 million mobile subscribers and over 1.1 million Home Internet subscribers. The digital services portfolio includes the Helsi medical platform, the Kyivstar TV film and television platform, and the leading ride-hailing and delivery company, Uklon. Kyivstar is also a solutions provider for corporate clients, providing cloud technology, cybersecurity, and artificial intelligence services. Through its Kyivstar.Tech division, the company develops software development in Ukraine and is a partner for international technology companies such as Starlink.
Kyivstar increased its EBITDA by 32% in the first half of 2025, to $06 million, while its revenue grew by 28%, to $539 million.
