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Virgin Mobile USA makes debut on NYSE

Virgin Mobile USA CEO Dan Schulman, center, his daughter Molly, left, and Virgin Group chairman Sir Richard Branson, right, smile as they ring the New York Stock Exchange opening bell on Thursday to celebrate Virgin Mobile's initial public offering. PHOTO: AP

British billionaire Richard Branson grabbed a ringside seat on Thursday for the debut of Virgin Mobile USA's shares on the New York Stock Exchange as the newly public company raised US$412.5 million.

The flamboyant tycoon rang the opening bell to kick off the day's trading on the exchange with Virgin Mobile USA chief executive Dan Schulman, and pumped his arms in the air as the firm's stock was offered for sale to investors.

The cellphone company, a joint venture of Branson's Virgin Group and US telecommunications giant Sprint Nextel, said it had sold 27.5 million shares for US$15, reaping US$412.5 million from its initial public offering (IPO).

Virgin Mobile USA markets cellphones and pay-as-you-go calling plans to young people and said it had 4.8 million customers as of June 30. Monthly calling plans range from US$14.99 to US$99.99.

Branson watched excitedly from the floor of the exchange as Virgin Mobile USA's stock debuted.

He was flanked at the IPO by Schulman, a former AT&T executive, other company executives and two models dressed as angels.

The firm's shares, trading under the "VM" ticker symbol, closed at US$15.75.

The funds raised from the IPO were at the low end of the company's expectations as the company had priced the offering at between US$15 and US$17. The firm could opt to sell more shares if it wants, however, as the millions of shares sold on Thursday represent around 55 percent of the total.

The partial IPO follows the launch of Virgin Mobile in the US in July 2002. Customers can buy pre-paid calling cards to access phone services which are provided by Sprint Nextel.
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