Virgin plans surprise stock market landing
SIr rICHarD Branson’s Virgin atlantic airline is plotting a surprise listing on the London Stock exchange as it battles to repair its finances.
The potential flotation, reported by Sky News, would be the first time it has sold shares to the public and likely see majority owner Branson relinquish overall control.
It would allow the airline to raise money from the public markets after it came close to collapse during the pandemic. It put administrators on standby last may and has since raised around £1.5billion through three rounds of refinancing, including cash from Virgin Group.
The airline’s management, led by chief executive Shai Weiss, has reportedly pitched a sale of company shares to City investors in recent weeks. It could float on the exchange as soon as the autumn if the plan is successful. Investment banks Barclays and Citi have been hired to advise the board.
Virgin atlantic is hoping for a rebound in international travel, particularly on its lucrative route between New York and London.
Flights to the US accounted for over half its £2.9billion revenues in 2019 and 70 per cent of its network.
Branson launched Virgin atlantic in 1984 to ‘shake up’ the industry. His Virgin Group owns 51 per cent and US airline Delta air Lines owns the remainder. Virgin atlantic declined to comment.