Virgin Mobile USA files for IPO

Virgin Mobile USA has filed for an initial public offering, valued at as much as $467.5 million. The IPO will float 42.8 percent of the youth-focused MVNO, making available 27.5 million Class A common shares at $15 to $17 each--while Virgin Mobile USA plans to sell about 25.6 million shares, stockholders Best Buy and Sprint Ventures will liquidate an additional 1.95 million. Underwritten by Lehman Brothers and Merrill Lynch, the offering will drop Virgin Mobile's stake in the venture from 47 percent to 35.7 percent and trim Sprint's stake from 47 percent to 17.2 percent.

According to a Securities and Exchange Commission filing, proceeds are earmarked to repay debt and for general purposes. For the six-month period ending in June, Virgin Mobile USA reported adjusted earnings of $29.3 million on revenue of $667 million. The MVNO plans to trade on the New York Stock Exchange under the symbol "VM."

For more on the Virgin Mobile USA IPO:
- read this Wall Street Journal article

Related articles:
CEO exit adds to Virgin Media's hurdles
Virgin Mobile USA spreads messaging via 3jam SMS 2.0
Virgin Mobile USA, JumpTap partner for search
Virgin Mobile USA: Ads for free minutes
Virgin Mobile USA: Still room in the youth market