Virgin Mobile IPO Debut (VM, S)

Virgin Mobile USA (NYSE:VM) has raised $412.5 million after it priced its IPO of 27.5 million shares at $15.00 per share.  25.467 million shares are being sold by the company and the small remainder by holders; underwriters have a 4.125 million share over-allotment option.  The lead underwriter and book runner is Lehman Brothers, and joint book-runners were Merrill Lynch and Bear Stearns.  Here was our original coverage of the IPO at the filing date.

We recently noted that the terms were being set at $15.00 to $17.00, so some may deem this as a conservative pricing for billionaire Richard Branson’s wireless telecom venture that uses the Sprint Nextel (NYSE:S) network.  Shares should open for trading shortly after the open and original range estimates were pretty wide at $15.50 to $18.50, assuming those are accurate indications.

As of June 30, 2007, Virgin claimed 4.83 million customers. Revenues and net loss for the year ended December 31, 2006 were approximately $1.1 Billion and -$36.7 million; Revenues and net income for the six months ended June 30, 2007 were approximately $666.9 million and $26.5 million, respectively. As of June 30, 2007 and December 31, 2006, members’ accumulated deficit was approximately $(614.4) million and $(643.9) million, respectively. 

Jon C. Ogg
October 11, 2007