Virgin Mobile USA IPO could ring up $100M

Virgin Mobile USA Inc., the first mobile virtual network operator to launch in the United States, filed for an initial public offering in a move that signals the maturation of the MVNO segment of the wireless market in the United States in general and a notable step forward for Virgin Mobile USA specifically.
Virgin Mobile said that it has applied to have its stock listed on the New York Stock Exchange under the symbol “VM.” Although the company said that “the number of shares to be offered and the price range for the offering have not yet been determined,” a variety of media outlets reported that the IPO could raise up to $100 million.
The firm said it will use the proceeds from the IPO to repay debt and to make an undisclosed payment to Sprint Nextel Corp.
Lehman Brothers, with Merrill Lynch & Co. and Banc of America Securities acting as joint book-running managers, are handling Virgin Mobile’s IPO.
Virgin Mobile USA’s parent companies-Sprint Nextel Corp. and Virgin Group-are selling portions of their respective stakes in the firm. However, Virgin Mobile said that, upon completion of the offering, Sprint Nextel and Virgin Group together will continue to hold a majority of voting power “and will continue
to control us.”
In its filing with the Securities and Exchange Commission, Virgin Mobile released detailed information on its business. The firm, founded as a joint venture between Sprint Nextel and the Virgin Group, launched service in July 2002. By November 2003, the MVNO had racked up 1 million customers. As of Dec.