Virgin Trains filed a form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing although the offering is valued up to $100 million. The company expects to list its shares on the Nasdaq under the symbol VTUS.
The underwriters for the offering are Barclays, JPMorgan, and Morgan Stanley.
This company owns and operates an express passenger rail system connecting major population centers in Florida, with plans to expand operations further in Florida, Las Vegas and elsewhere in North America. It is the first new major private passenger intercity railroad in the United States in over a century, and management believes its business represents a scalable model for twenty-first-century passenger travel in North America.
Virgin Trains currently operates between Miami and West Palm Beach, one of the most heavily traveled and congested regions in the U.S. The firm has commenced construction of the expansion of its Florida passenger rail system to Orlando, Florida, and it intends to further expand its rail service to Tampa, Florida.
Louis Berger estimates the total potential addressable market of travelers across the Miami to Tampa corridor to be roughly 413 million trips annually. The company can operate up to 32 trains daily that are capable of speeds of up to 125 miles per hour, and it owns stations located in the heart of downtown cities and major transit hubs in Florida. Management believes its passenger rail system offers travel that is faster, safer, more eco-friendly, more reliable, less expensive, more productive and more enjoyable than travel by car or air.
The company intends to use the net proceeds from this offering to upgrade its infrastructure as well as complete its construction and expansion. The remainder will be used for general corporate purposes.
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