Kyivstar Group shares fell by 7% in the first month on Nasdaq. What do experts say about this?
Within a month of its listing on the Nasdaq stock exchange, Kyivstar Group’s share prices fell by more than 7%, ranging from $9.92 to $16.48 per share.
Within a month of its listing on the Nasdaq stock exchange, Kyivstar Group’s share prices fell by more than 7%, ranging from $9.92 to $16.48 per share.
As Forbes, which analyzed trading dynamics, reminds, shares with the ticker KYIV began trading on the American stock exchange on August 15.
After going public, the company’s shares rose in price from $12.5 to $13–14, but the short-term growth was replaced by a decline to around $11. Trading closed on September 15 at $10.68 per share.
At the same time, the publication notes that Kyivstar Group shares are traded more actively compared to its parent company VEON, whose shares cost $53 apiece.
«The average volume of transactions, calculated based on three months of trading data, at Kyivstar Group is 1.06 million, while at VEON this figure slightly exceeds 200,000 transactions per month,» Forbes writes.
Meanwhile, Kyivstar Group’s capitalization as of September 15 was $2.5 billion, but during the month of trading it exceeded the $3.5 billion threshold.
Looking to the future
Capital Times Investment Director Artem Shcherbyna believes that the interest of institutional investors from Ukraine is reduced by the National Bank’s currency restrictions. He also adds that so far investors associate Kyivstar Group more with its parent company VEON than with the Ukrainian telecom business, but this may change.
According to investor Taras Huk, the decline in the price of shares in the first months after the start of trading is a normal situation for the telecom business.
Meanwhile, as noted in a summary by analysts at the stock analysis platform Simply Wall St, the company that owns the Ukrainian mobile operator is currently undervalued by four out of six key criteria:
- underestimation of the potential of future cash flows;
- the gap between the current share price and the «fair value» based on the company’s performance, financial flows, and assets;
- low price-to-earnings ratio (Price-To-Earnings vs Peers). Kyivstar Group has a price-to-earnings ratio of 8.2, while the industry average is 18.48;
- below average price-to-earnings ratio compared to the industry (Price-To-Earnings vs Industry).
Recall that we previously wrote about how Ukrainians can purchase Kyivstar shares.
During the NASDAQ Bell Ringing Ceremony in New York, the CEO of Kyivstar, answering a question from a dev.ua journalist, reported that the company’s approximate capitalization after going public is $2.8 billion.
We also reported that Kyivstar (Kyivstar Group) has an office in Dubai.
The price of Kyivstar shares on Nasdaq fell by 4,3%. How did the quotes change over the course of two weeks?
The price of Kyivstar shares on Nasdaq fell by 4,3%. How did the quotes change over the course of two weeks?
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