On Friday, VEON Ltd [NASDAQ: VEON] announced that its free float had risen to 43.8%. This followed Telenor’s decision to sell their remaining shares in the company. Telenor had been holding 8.9% of VEON shares or 157 million of the outstanding equity. This sales was in line with Telenor’s plan to divest from the company. The free float was placed in the market at $2.35 which was a 3.7% of the previous close. VEON CEO, Ursula Burns stated that the removal of the market overhang that came with anticipation of this sale meant was a good thing for the company.
Earlier in the month, the company had released some impressive Q3 results. The company announced that in the year-to-date, it had recorded revenue growth of 4.6%. It also announced that the EBITDA had grown by 8.8% in the year-to-date. The company noted that its revenue growth was pushed by core access data that has grown significantly, due to increased investments in data networks in Q3.
The company also announced that continued investing on its data networks in the medium-term. The company announced that alongside continued investment in data networks, it will continue to look out for new opportunities to grow revenues.
However, while the company continues to grow its investments, it has some challenges in some of its markets. For instance, when announcing Q3 results, the company noted that there were challenges in the Russian market in terms of network quality. Nonetheless, the company is committed to this market, and intends to keep investing on improved network quality.
VEON’s chart reflects its potential value growth in line with its investments. After trading in a range for over a month, the stock has broken resistance with a breakout gap as seen below.
About VEON Ltd
Veon Ltd is a provider of mobile and fixed telecom services. It t has its headquarters in Amsterdam, Netherlands.