Virgin Mobile USA Inc. today announced that they intend to increase their IPO offering five-times over their initial SEC filing back in May. The company initially set out to earn $100 million through an IPO, but now expects to raise up to $506 million under the ticker symbol “VM” on the New York Stock Exchange.
The additional funds will be used to pay off some of Virgin Mobile’s accrued debt, unlike other MVNOs that shall remain nameless, as well as the buying out an unspecified portion of Sprint Nextel’s stake in the wireless venture. Virgin Mobile has a deal to use Sprint’s network until 2027 – so a partial buyout now could give them some leverage in the future.
Virgin Mobile’s US IPO will only be a fraction of the $2 Billion UK IPO, but we can’t say that a $506M initial offering is anything to scoff at.
[Via: New York Business]