A Ukrainian company announced plans to go public on the American Nasdaq exchange. Is it possible to do so during the war?
Let me start by saying that Nasdaq is home to the world’s leading tech companies – Google, Microsoft, Apple, Tesla. If we compare it to football, there are national championships, the Europa League, the Conference League, and the Champions League. Nasdaq is like the Champions League, where the best elite clubs play. The very fact that our company may be represented there for the first time is a positive sign for the investment climate in Ukraine. It’s an important signal for investors that, even during a war, it is possible to invest in leading companies in our country.
One of the first to announce plans to list on the American exchange was the OTT platform Megogo in the summer of last year. Its co-owner, Fedir Drozdovskyi, said the company began preparing for a U.S. listing as early as 2019-2020, but due to market conditions and the expected global recession, plans had to be postponed. Currently, the company plans to conduct a round of private investment fundraising before going public. Ajax Systems also announced its plans to go public on the American exchange.
More concrete steps toward entering the Nasdaq exchange have already been taken by mobile operator Kyivstar. Its parent company, Veon, has reached a preliminary agreement with investment firm Cohen Circle to represent the operator on Nasdaq.
Experts note that going public is risky for any company, especially for one operating in a country at war (Kyivstar has 23.3 million subscribers). At the same time, such a step brings Ukraine closer to global markets and attracts international investments.
And here we come back to the investment climate in Ukraine. I often write about the pressure on businesses from law enforcement, about the increase in taxes, which understandably drives potential investors away. But such a significant event as a Ukrainian company going public on the American exchange is more than convincing for all international investors.
The listing of our operator on Nasdaq is not just a victory for a single company. It is a signal for the entire Ukrainian market: despite all the difficulties, our companies are recognized and valued by investors from around the world.
Also, let me remind you that mobile operators in Ukraine (the three main ones: Kyivstar, Vodafone, Lifecell) not only provide services to Ukrainians, but also have certain obligations during the war. In fact, these are strategically important enterprises, which, even under force majeure circumstances, must ensure stable communication. Last September, a draft law was registered in the Verkhovna Rada to strengthen the responsibility of operators for poor-quality communication during blackouts. The law proposes the introduction of a penalty system and regular checks on compliance with established requirements. So, the listing of one of the three leading operators on the American exchange will allow attracting investment and directing these additional funds to ensure stable communication.