Branson toasts Virign Mobile USA IPO
British billionaire Richard Branson grabbed a front row seat Thursday for the debut of Virgin Mobile USA's shares on the New York Stock Exchange as the newly public company raised 412.5 million dollars.
By Agencies |
NEW YORK: British billionaire Richard Branson grabbed a front row seat Thursday for the debut of Virgin Mobile USA's shares on the New York Stock Exchange as the newly public company raised 412.5 million dollars.
Television footage showed Branson, one of Britain's best-known business figures, watching excitedly from the floor of the exchange as Virgin Mobile USA's stock debuted.
The pay-as-you-go cell phone company, a joint venture of Branson's Virgin Group and US telecommunications giant Sprint Nextel, said it had sold 27.5 million shares for 15 dollars, reaping 412.5 million dollars from its IPO.
The flamboyant tycoon, who founded Virgin Atlantic Airways and Virgin Records, was flanked at the initial public offering (IPO) by Virgin Mobile chief executive Dan Schulman, a former AT&T executive, and two models dressed as angels.
The firm's shares were trading at 15.70 dollars in late morning deals under the "VM" ticker symbol.
The funds raised from the IPO were at the low end of the company's expectations as Virgin Mobile had priced the offering at between 15 and 17 dollars.
Virgin Mobile could opt to sell more shares if it wants, however, as the millions of shares sold Thursday represent around 55 percent of the total.
The company's wireless services target the teenage and youth market. Users buy pre-paid minutes to use phone services which are provided by Sprint Nextel.
Virgin Mobile, which was launched nationally in the United States in July 2002, said it served 4.8 million customers as of June 30.
The cellphone group reported a net profit of 26.5 million dollars on revenue of 666.9 million dollars for the first six months of the year after reporting a loss of 36.7 million in 2006.
Virgin Mobile plans to use the IPO proceeds to pay off debt and buy a stake of over 16 percent from Sprint Nextel's interest in the company.
Television footage showed Branson, one of Britain's best-known business figures, watching excitedly from the floor of the exchange as Virgin Mobile USA's stock debuted.
The pay-as-you-go cell phone company, a joint venture of Branson's Virgin Group and US telecommunications giant Sprint Nextel, said it had sold 27.5 million shares for 15 dollars, reaping 412.5 million dollars from its IPO.
The flamboyant tycoon, who founded Virgin Atlantic Airways and Virgin Records, was flanked at the initial public offering (IPO) by Virgin Mobile chief executive Dan Schulman, a former AT&T executive, and two models dressed as angels.
The firm's shares were trading at 15.70 dollars in late morning deals under the "VM" ticker symbol.
The funds raised from the IPO were at the low end of the company's expectations as Virgin Mobile had priced the offering at between 15 and 17 dollars.
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Virgin Mobile could opt to sell more shares if it wants, however, as the millions of shares sold Thursday represent around 55 percent of the total.
The company's wireless services target the teenage and youth market. Users buy pre-paid minutes to use phone services which are provided by Sprint Nextel.
Virgin Mobile, which was launched nationally in the United States in July 2002, said it served 4.8 million customers as of June 30.
The cellphone group reported a net profit of 26.5 million dollars on revenue of 666.9 million dollars for the first six months of the year after reporting a loss of 36.7 million in 2006.
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Virgin Mobile plans to use the IPO proceeds to pay off debt and buy a stake of over 16 percent from Sprint Nextel's interest in the company.
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