Virgin America IPO may value it for 1 billion USD
Virgin America IPO may value it to 1 billion USD, after issuing of about 13.3 million shares in the range of 21-24 USD per share. The company plans to use its profit from the IPO for general corporate purposes, including working capital, sales and marketing activities, general and administrative expenses and capital expenditures. Virgin America […]
Virgin America IPO may value it to 1 billion USD, after issuing of about 13.3 million shares in the range of 21-24 USD per share. The company plans to use its profit from the IPO for general corporate purposes, including working capital, sales and marketing activities, general and administrative expenses and capital expenditures. Virgin America says its shares will be listed on the Nasdaq Global Select Market under the symbol VA.
Details of Virgin America IPO come after the company announced that its revenue for the third quarter increased by 24% due to improved passenger traffic and higher fares. After offering the shares of Virgin America will reach 43.2 million, which value the company at up to 1 billion USD at the upper end of the price in the offer.
The company, which is partly owned by the Virgin Group Ltd of the billionaire investor Richard Branson recently generated positive results through less flights and adding shorter routes. Branson is also the founder of Virgin Galactic, which suffered a concussion after crash on Friday with her rocket ship, which broke miles above the ground, killing one pilot and seriously injuring another.
In the last reporting period, Virgin America reported a profit of 41.6 million USD, compared to 33,500,000 USD an year earlier. The revenues increased by 4.7% to 405.5 million USD. The average ticket prices rose by 3.8%, while passenger traffic improved 2.8%. The capacity fell 0.8%, while the percentage of fullness seats increased to 83.5% from 80.5%. The revenue from passenger space for a mile – a key measure of performance for the industry – grew by 4.3%.
