On the second day of trading on the Nasdaq stock exchange, shares of Ukrainian Kyivstar Group Ltd, which trade under the ticker KYIV, jumped 17%. What is the reason for the increase?
On the second day of trading on the Nasdaq stock exchange, shares of Ukrainian Kyivstar Group Ltd, which trade under the ticker KYIV, jumped 17%. What is the reason for the increase?
According to Bloomberg, this increase «more than offset» the losses on the first day of trading.
Kyivstar is the first Ukrainian company to be listed on the Nasdaq stock exchange. On the first day of trading, Kyivstar Group Ltd shares fell 7,4% to $11.52 at the close of trading. The company’s value was about $2.6118 billion.
Bloomberg attributes the rise in Ukrainian stocks to talks to end the war Russia has waged against Ukraine. Investors are now often favoring companies linked to the end of the war this year. UBS’s basket of European stocks that stand to benefit from Ukraine’s recovery has risen 32% since the start of the year, compared with a 9,1% rise in the Stoxx 600 index.
«I am sure that the news that appears literally at the moment I write is of great importance for market demand,» commented Mark Malek, chief investment officer of Siebert Financial, on the rise in shares.
In his opinion, with the exception of some innovative technologies, such as the implementation of Starlink, Kyivstar is an «old-school European telecommunications operator.»
«It seems like it needs to focus on the fast-growing communications technology business to achieve the best potential growth,» Malek believes.
Kyivstar Group Ltd shares are currently up 12,66% and selling for $15.21. The company is valued at $3.6 billion.
Earlier, VEON, which has about a 90% stake in Kyivstar, entered into non-placement agreements worth $52 million with institutional investors — this is the minimum guaranteed amount of funds raised. If demand exceeds expectations, the maximum amount could reach $200 million. VEON CEO Kaan Terzioglu called this event a «people’s IPO» and emphasized the support from the governments of the US, Ukraine, and the EU.
Recall that earlier the Antimonopoly Committee of Ukraine (AMCU) found that the agreement to purchase LLC MTPK, which owns the Tabletki.ua service, by Kyivstar, has risks of monopolization. The AMCU is going to investigate in more depth how this acquisition will affect competition.
