Richard Branson's Virgin Atlantic Airlines is considering an initial public offering and a possible listing on the London Stock Exchange to strengthen the company's financial position, according to media reports.
According to the report, Branson's Virgin Group owns 51 per cent of Crowley Airways, which has been discussing a possible IPO with institutional investors, and insiders say bankers from Citi and Barclays have been hired to oversee the listing.
Based on the positive response of institutional investors in the discussion, the company is likely to announce its IPO intention in the autumn. The IPO will be the first time Virgin has sold shares to the public since it began operating in 1984.
Unless Branson chooses to subscribe for a new stake in the airline, he may also relinquish control of the airline through IPO. Delta owns the remaining 49 per cent of Virgin.
Insiders say Virgin is not in urgent need of money because it has enough money to make it through the next few months. However, Branson and other executives are reported to be open to the idea of IPO to provide future financing opportunities as the airline industry emerges from the COVID-19 pandemic and its subsequent recovery.
Virgin arranged a £1.1 billion ($1.67 billion) rescue plan last September after its transatlantic travel business was hit hard by a pandemic in 2020. this includes £200m from Branson, loans from hedge fund Davidson Kempner Capital Management and money from existing creditors.