Feeds

Virgin Mobile prices IPO at up to £713m

Trimming expectations

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

Virgin Mobile today announced a target range of 235p-285p per share for its stock market float. This values the mobile virtual network operator at £588m to £713m ($1.08bn - $1.32bn) net and is less than expected. Analysts had targeted up to £1bn for the float. The enterprise value of the business is set at £900m and £1.025bn, with Virgin Mobile carrying £311m in debt on its books. It makes its debut on the London Stock Exchange on 21 July.

Virgin Mobile will float 37-47 per cent of the business, depending on demand. This will give Richard Branson's Virgin Group £230m to £275m. The City expects Branson to pump the money into a new US domestic airline, which launches next year.

And let's not forget T-Mobile, which handles the technical stuff for Virgin Mobile, leaving its customer to concentrate on the billing and customer relationships. It gets 25 per cent of any equity value over £550m, capped at £100m, so it will be very disappointed if Virgin Mobile is pumped out at the lower price.

There's a lot more background in the press release. You are not supposed to read it if you live in the US, Canada, Australia or Japan. So access may be blocked if you come from these countries. ®

Related stories

Virgin Mobile gives it up for charity
Virgin will float next month
T-Mobile and Virgin settle long-running dispute

Choosing a cloud hosting partner with confidence

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.