AMSTERDAM and DUBAI - VEON (NASDAQ:VEON) Ltd. (NASDAQ:VEON; Euronext Amsterdam:VEON), a global digital operator, has announced the initiation of its delisting process from Euronext Amsterdam. The company's shares will cease trading on the Dutch exchange after November 22, 2024, with the official delisting effective three days later, on November 25, 2024. Following this transition, VEON will centralize its share trading on the Nasdaq Capital Market.
Kaan Terzioglu, VEON Group CEO, stated that the consolidation of trading on Nasdaq is in line with the company's long-term strategy and serves the best interests of VEON's investors. He added that the move is expected to enhance liquidity and streamline reporting processes. Terzioglu also mentioned that VEON's continued presence on Nasdaq, coupled with the company's plan to relocate its headquarters to Dubai, will position it as the largest Nasdaq-listed company based in the city, reflecting a strategic commitment to investors interested in frontier markets.
To facilitate the transition for Euronext Amsterdam shareholders, VEON is providing mechanisms to adjust their holdings to multiples of 25, the number required to exchange for American depositary shares (ADSs) on Nasdaq. The company will also cover the ADS issuance fees for shareholders who deposit their common shares with The Bank of New York Mellon (NYSE:BK), the company's depositary, by the last trading date.
VEON assures that holders of ADSs who do not possess common shares on Euronext Amsterdam do not need to take any action due to the delisting. Investors seeking more information about the delisting process can refer to the company's website.
About VEON, the company offers converged connectivity and digital services to approximately 160 million customers across six countries. VEON's focus is on leveraging technology to empower individuals and stimulate economic growth.
This announcement is based on a press release statement and contains forward-looking statements regarding the delisting timetable and expected outcomes, which are subject to risks and uncertainties. VEON has cautioned that these statements are not guarantees of future performance and that actual results may differ materially from those projected in the forward-looking statements.
In other recent news, VEON Ltd. reported impressive growth and a strong liquidity position in Q2 2024. The company's U.S. dollar revenues saw a rise of 12.1% year-over-year, and Group EBITDA increased by 10.6% during the same period. The firm's digital revenues now account for 10% of the total revenues in the first half of 2024, a result of its focus on digital strategy and 4G network expansion. VEON's operating companies in Ukraine, Pakistan, Kazakhstan, and Bangladesh also reported growth, further strengthening its financial position.
However, the company faced some challenges. A cyber-attack in Ukraine impacted revenue and EBITDA by approximately $46 million and $47 million, respectively. Additionally, operations in Bangladesh experienced network disruptions, although the situation has since stabilized. Despite these setbacks, VEON anticipates continued revenue growth of 16-18% and EBITDA growth of 18-20% for the full year of 2024. The company is also focused on repaying its 2025 debt maturities, indicating a proactive approach towards its financial obligations. These are recent developments providing insight into VEON's performance and future expectations.
InvestingPro Insights
As VEON Ltd. (NASDAQ:VEON) prepares to delist from Euronext Amsterdam and consolidate its trading on Nasdaq, investors may find additional context from recent financial data and expert insights valuable.
According to InvestingPro data, VEON's market capitalization stands at $2.08 billion, reflecting its significant presence in the telecom sector. The company's revenue for the last twelve months as of Q2 2024 was $3.87 billion, with a notable revenue growth of 6.53% over the same period. This growth aligns with CEO Kaan Terzioglu's strategic vision for the company's future.
InvestingPro Tips highlight that VEON has been highly profitable over the last twelve months, with analysts predicting continued profitability this year. This financial health supports the company's decision to streamline its listing and potentially enhance shareholder value. The company's high return over the last year, with a one-year price total return of 75.07%, underscores its strong performance leading up to this strategic move.
It's worth noting that while VEON does not currently pay a dividend to shareholders, its focus on growth and market positioning may be prioritized over immediate dividend returns. This approach aligns with the company's emphasis on frontier markets and its upcoming relocation to Dubai.
For investors seeking a deeper understanding of VEON's financial position and future prospects, InvestingPro offers 5 additional tips, providing a more comprehensive analysis to inform investment decisions during this transition period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.