Virgin America files for floatation

29th Jul 2014
Virgin America files for floatation

Virgin America has announced that it has filed a registration statement with the Securities & Exchange Commission for a proposed initial public offering of its common stock.

Cash raised from any floatation will be used to fund an expansion of the airline.

The IPO filing comes after the airline reported its first annual profit since it was created in 2007.

Virgin America, partially owned by entrepreneur Richard Branson, recorded net income of $10 million in 2013, an improvement from the loss of $145 million reported a year earlier.

Full-year operating revenue climbed to $1.4 billion from $1.3 billion.

Virgin America said the IPO offer would total $115 million.

However, there were no details on which exchange it would list.

The carrier operates primarily from focus cities of Los Angeles and San Francisco to other major business and leisure destinations in North America.

Virgin America provides service to 22 airports in the US and Mexico with a fleet of 53 narrow-body aircraft.

The number of shares to be offered and the price range for the proposed offering have not yet been determined.

Barclays and Deutsche Bank Securities are acting as joint book-running managers and as representatives of the underwriters for the proposed offering.

A registration statement relating to the offering of Virgin America’s securities has been filed with the Securities & Exchange Commission but has not yet become effective.



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