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Virgin Mobile USA raises $412 million; Market still cautious on MVNOs

October 16, 2007 by Dusan Belic - Leave a Comment

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Virgin Mobile USA logoVirgin Mobile USA, the joint venture between Sprint and Richard Branson’s Virgin Group, has managed to raise $412, about $50 million less than they’ve hoped for. Despite the fact that Virgin Mobile USA is doing well, the market is still cautious on the virtual carriers. The shares were priced at $15 (the low-end of its $15-$17 range) and after the first day of trading we saw them moving slightly up, at one point hitting $16.63, before settling around $15.50.
Following the IPO, Sprint Nextel kept a reduced stake of around 17.2%, while Virgin Group got about 35.7% of the company. Roughly 44% of the MVNO was floated…

[Via: paidContent.org]

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