Virgin Mobile USA 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 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]