Virgin Mobile USA files for IPO
By Dusan Belic on Wednesday, September 26th, 2007 at 4:16 AM PST In Announcements, Virgin Mobile
Virgin Mobile USA (NYSE: VM) has filed for an IPO to pay its debts and get additional money to fund operations. The plan is to sell 27.5 million shares at prices ranging from $15 to $17 and raise about $467.5 million. Of that amount, $45 million will be used to pay what it owes to Sprint (NYSE: S) and $150 million to other creditors.
Those not familiar should know that Virgin Mobile USA is a youth-focused MVNO organized as a joint venture between Sprint and Virgin Group. After the IPO, the stakes of both companies would naturally reduce. As of June 30, Virgin had 4.83 million customers, and made a profit of $26.5 million in the H1 2007.
Personally, I’ve been covering Virgin Mobile USA and all I can say that they’re quite innovative for an MVNO. My advice is to wait a bit till the price settles down and buy the damn thing afterwards. However, please note that we don’t take any responsibility for your actions…
[Via: Phone Scoop]
