Virgin Galactic stake revealed by Mubadala and affiliates
▶ Abu Dhabi investment arm and its affiliates each own 7.08% of company
Mubadala Investment Company, Abu Dhabi’s strategic investment arm, and its affiliate companies have disclosed stakes in space tourism company Virgin Galactic.
The state-owned company disclosed a 7.08 per cent stake, or 14.88 million shares, in the US aerospace company, according to a regulatory filing to the US Securities and Exchange Commission on Friday.
Mubadala-owned International Petroleum Investment Company (Ipic), along with Ipic’s units Aabar Investments and Aabar Space, each own a 7.08 per cent stake in Virgin Galactic.
According to the filing, the companies acquired the shares for “investment purposes”.
Mubadala, which invests on behalf of Abu Dhabi government entities, has assets worth Dh853 billion under management. The company – which invests in sectors including technology, life sciences and renewables among others – is increasingly seeking investments in advanced technology sectors.
Last week, Virgin Galactic said it plans to raise $460.2 million (Dh1.69bn) through a new share sale. It intends to use the proceeds from the share offering for general corporate purposes, including working capital, general and administrative matters and capital expenditures.
It has delayed plans to fly its billionaire founder Richard Branson into space due to pandemic-triggered employee shortages.
Mubadala Investment Company and its affiliate companies disclosed their stakes in space tourism company Virgin Galactic on Friday.
The company revealed that it owns 14.88 million shares, a 7.08 per cent stake, in the aerospace company, according to a regulatory filing to the US Securities and Exchange Commission.
Mubadala-owned International Petroleum Investment Company and its subsidiaries Aabar Space and Aabar Investments each own 7.08 per cent in Virgin Galactic.
The companies acquired the shares for “investment purposes”, according to the filing.
Mubadala, which invests on behalf of the Abu Dhabi government, has assets worth Dh853 billion under management.
It has interests in the technology, life sciences and renewables sectors and is increasingly looking to invest in the advanced technology sector.
The stake disclosure comes after Virgin Galactic offered 23.6 million shares at $19.50 (Dh71.6) each last week, according to a statement issued last Wednesday. The company expects gross proceeds of $460.2 million through the new share sale, which is expected to close tomorrow.
Virgin Galactic intends to use the proceeds for general and administrative matters and to meet working capital and capital expenditure requirements.
It also extended an option to buy an additional 3.54 million shares within a 30-day period.
Credit Suisse and Morgan Stanley are the joint lead book-running managers for the offering.
The company’s shares fell by 5.64 per cent to $18.25 at the close of trading in New York on Friday, bringing its market capitalisation down to $3.84bn.
Virgin Galactic last week shelved plans to fly its British billionaire founder Richard Branson into space.
Mr Branson’s trip will depend on two test flights. The first powered space flight from Virgin’s Spaceport America in southern New Mexico is set for this autumn with just two test pilots. Four mission specialists will join the second test flight.
Mr Branson will fly into space in the first quarter of next year, “assuming both flights demonstrate the expected results”, Virgin Galactic said in a regulatory filing last Monday.
The company blamed the delay on the Covid-19 pandemic, after measures to curb the spread of the virus limited the number of employees at its spaceports in Mojave, California, and New Mexico.
“As always, safety remains the central focus and the testflight programme will progress with a step-by-step, diligent approach,” the company said at the time. “Expected dates may adjust as the company processes data from each of its test flights.”
Virgin Galactic said there have been “minimal customer refunds” from the 600 people who paid for seats on the company’s sub-orbital flights. It had received more than 700 deposits by July 30 from people interested in buying a ticket and 12 deposits from customers interested in orbital space flights.
Virgin Galactic reported that its net loss had widened to $63m in the second quarter, from a $60m net loss in the first quarter.
It faces competition from the Russian space agency, Boeing and Elon Musk’s SpaceX, which all are planning space tourism operations.
SpaceX completed its first manned mission to the International Space Station last week after its Dragon capsule carried two Nasa astronauts back to Earth.
Virgin Galactic also said it will work with engine manufacturer Rolls-Royce to develop an aircraft that can travel at three times the speed of sound.
The company is also an early customer for Boom Technology’s planned supersonic commercial aircraft, with a top speed that is about twice the speed of sound.