US mobile virtual network operator (MVNO) Virgin Mobile USA says its initial public offering (IPO) raised USD412.5 million yesterday, after the offering was priced at the low end of expectations. Virgin Mobile, a joint venture between Sprint Nextel and the Virgin Group, had set a target range of between USD15 to USD17 per share in the IPO. In the event it sold 27.5 million shares for USD15 per share, giving the venture a market capitalisation of approximately USD795 million. In a filing with the US Securities and Exchange Commission the mobile reseller said it would use the bulk of the proceeds to repay debt and buy out Sprint Nextel’s 16.7% equity stake. According to TeleGeography’s GlobalComms database, Virgin Mobile had 5.2 million subscribers at the end of June 2007, compared with 8.57 million for its largest rival in the pre-paid segment, Tracfone.