Feeds

VirginMobile float price may sink

Rough waters ahead/stormy seas etc...

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The flotation of Virgin Mobile was in question this morning because institutional investors are refusing to back Sir Richard Branson's valuation of the company. The mobile operator was set to float for about £713m but big investors and City analysts are questioning whether Branson is asking too much for the shares.

The shares were predicted to sell for between 235p and 285p, valuing the firm at between £588m and £713m. The firm has taken its roadshow to investors in the US and is waiting to gauge their reaction before setting a final price.

One analyst, Andrew Beale from Arete, quoted in The Times, titled his analyst note "Virgin on the Ridiculous". He thinks 160p is a fair value for the shares - "at the first signs of price competition this is where the shares are headed".

Virgin Mobile were not available to comment on this story. Bearded entrepreneur Richard Branson has had a difficult relationship with the City. He returned Virgin to private ownership after nearly two years as a public company, blaming analysts and short-term investors for the decision. ®

Related stories

Virgin Mobile prices IPO at up to £713m
Virgin Mobile gives it up for charity
Virgin will float next month
Virgin Mobile edges closer to IPO

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.