Virgin Atlantic has been expected to go public for quite some time now, albeit delayed due to the dire consequences of the 2020 pandemic.
Around August 2021, rumours were floating around Virgin Atlantic IPO, but since then, there have been no updates to prove that it’s happening.
Here’s everything you need to know about the potential Virgin Atlantic IPO:
Virgin Atlantic is owned by British billionaire Richard Branson, who owns all companies operating under the Virgin name, including Virgin Galactic and Virgin Hotels. To this moment, he’s still the majority shareholder in Virgin Atlantic since the company is still not listed for the public.
No one knows for sure when Virgin Atlantic IPO will become a reality. News first came about the potential IPO in August 2021, and then there were no updates for some time.
An official report by Virgin Atlantic later mentioned that the IPO won’t happen until early 2022. The company reportedly wanted to focus on reviving the transatlantic market after the recession that resulted from the pandemic and its travel restrictions.
However, since then, no updates have suggested the IPO is anytime soon.
The Virgin Atlantic IPO has likely been delayed due to the stalled market that followed the pandemic.
Economic recovery from the pandemic hasn’t been easy on the UK, especially airlines that suffered the consequences of travel restrictions. As a result, plenty of companies that had planned for IPOs failed to make it to the public.
Most of them are waiting to be listed during 2023 instead, but even that isn’t guaranteed for Virgin Atlantic.
Because it’s not public yet, there’s not a lot of information available about Virgin Atlantic’s funds. Its current net worth is yet to be known, but it was valued at £3.1 billion back in 2020.
It’s hard to estimate Virgin Atlantic’s current valuation since the journey has been full of ups and downs since 2020, but the company reportedly received funding in 2021. It raised £400 million from Delta Air Lines and Virgin Group to improve liquidity. Virgin Group offered £204 million, which shifted its ownership structure to 51%, leaving the rest to Delta Air Lines.
Before the latest funding that Virgin Atlantic raised in 2021, Virgin Atlantic went through three funding rounds, totaling around $1.6 billion.
The three funding rounds had been through secondary markets, the lead investor being Air France KLM.
To wrap up, we don’t know yet when Virgin Atlantic IPO will become a reality. Since news first came about the IPO in 2021, there haven’t been any updates to suggest that it’s happening anytime soon.
It was expected to happen a couple of years ago, but the pandemic had its toll on the company’s profit, causing a delay that still sees no end in sight.
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