Virgin America valued at $1.35 billion post-Nasdaq flotation
Virgin America’s debut on the Nasdaq stock exchange in New York went spectacularly well with share prices increasing by more than 30 per cent during the first day of trading.
The company floated 13.3 million shares at an initial $23 (£15) a share, which later peaked at $31.18. Approximately $307 million (£196 million) was generated by the close of business.
Virgin America is now currently valued at $1.35 billion (£861 million), a far cry from its early days of operating – after many years of losses, the airliner finally reported profits in 2013.
Josef Schuster, founder of IPO investment firm IPOX Schuster, was quoted by City A.M. as saying: “I think it’s a buy-and-hold story.”
The Virgin Airline brand is growing in renown. Its unique selling point is “affordable premium” – the quality is there but it is not lavishly priced. Some amenities passengers can enjoy include WiFi, mood lighting and fine dining.
Virgin currently has a fleet of 53 planes but is currently restricted in the number of destinations it can offer customers.
Virgin America posted its third quarter results at the start of the month, reporting operating income of $52.3 million and a net income of $41.6 million.
Its operating margin for the period was 12.9 per cent, a 1.4 point improvement compare to the same period last year.
After months of uncertainty and political wrangling, a Brexit deal was finally announced on Christmas Eve 2020. The deal includes…
The first step to building or expanding a business is creating a concrete business development plan. Entrepreneurs will find plenty…
Every business operates with the goal of growth, but only a few manage to beat the competition at every curve.…