Virgin America has filed for a US stock exchange listing and is to price its initial public offering at $21-$24 per share, valuing the carrier at more than $1 billion.
The US low-cost domestic carrier plans to sell 13.3 million shares in the flotation, raising up to $319 million which will be used to expand its fleet of 53 Airbus A320s to around 100.
Sir Richard Branson, who owns a 22% stake in the carrier, in line with rules which prevent foreigners from owning more than a quarter of any US airline, is on course for a windfall of up to $220 million, the Telegraph reported.
Virgin America, established three years after the terrorist attacks of September 2001 and before the ensuing financial crisis plunged the global airline industry into turmoil, is to trade on the Nasdaq stock exchange, where it will have the ticker “VA”.
The IPO details come as Virgin America reported its third-quarter earnings rose 24% due to improved passenger traffic and higher fares.
The profit of $41.6 million for the period was up from $33.5 million a year earlier. Revenue increased 4.7% to $405.5 million.