Virgin mulls a bigger float stake, but analysts remain cautious

22 Jul 2004

The Virgin Mobile Group is said to be considering increasing the size of its share issue from 25% of the company to 27.5% after early gains on the London stock exchange. Shares in the UK-based MVNO rose by GBP0.06 to GBP2.06 during early trading, before closing at GBP2.01, valuing the company at GBP500 million. Although Virgin’s bankers, Morgan Stanley and JP Morgan claimed to have been overwhelmed by demand from investors, sections of the analyst community are preaching caution, saying that the shares should have been priced in the GBP1.8 to GBP2 price range. They point to the fact that even at GBP2, the shares represent only a 12% discount on the share price of fellow UK-based cellco Vodafone.

United Kingdom, Virgin Mobile UK