Virgin America IPO gives carrier 1 billion dollar valuation
Virgin America will price its upcoming initial public offering at $21-$24 a share, giving the airline a valuation of over $1bn.
The company is making 13.1 million of the 13.3 million shares available for public sale in the IPO, which is expected to bring in up to $320 million.
The timing is not ideal as the news comes just after a fatal crash of a Virgin Galactic test flight.
In the SEC filing, the company listed one of the risk factors as ‘negative publicity related to the Virgin brand name materially affecting our business".
The carrier posted net income of $56.2 million in the first nine months of this year, compared to a loss of $4 million in the same period last year.
It said the money raised will be used for capital expenditures, marketing, flight equipment and aircraft-operating leases.
Richard Branson’s Virgin Group has a 22% stake in Virgin America through VX Holdings.
Another major stake is owned by hedge fund Cyrus Capital Partners, which has about 40%.
C. David Cush, Virgin America chief executive said airline employees would be able buy shares in the IPO "at the same price, and at the same time, as Wall Street."
Virgin America will list on the Nasdaq under the ticker symbol ‘VA.’
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Airbnb eyes a loyalty program but details remain under wraps
Qatar Airways offers flexible payment options for European travellers
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026