Virgin Mobile USA, a 50:50 joint venture between Richard Branson’s Virgin Group and Sprint Nextel, plans to raise USD100 million in an initial public offering (IPO) according to a filing submitted to the Securities and Exchange Commission. The MVNO says it intends to use all the net proceeds from the IPO and some borrowings under new credit facilities to repay existing debt and pay an undisclosed amount to Sprint Nextel. Neither the number of shares to be offered in the IPO, or an estimated price range, were disclosed in the filing.
According to TeleGeography’s GlobalComms database, Virgin Mobile – which launched in the US in 2002 – had 4.88 million customers at the end of March 2007. In 2006, the company made a loss of USD36.7 million, improving on the USD102.9 million loss incurred the previous year.