Virgin America (VA) Up in Aftermath of IPO
Founded in 2004, by British billionaire, Richard Branson, Virgin America, Inc. provides scheduled air travel in the continental United States and Mexico.
Shares of Burlingame, California based Virgin America, Inc. (VA) rose sharply on Tuesday, amid a modest up day on Wall Street overall. Virgin America's stock was up 13.37%, rising $4.37 per share to close at 37.05, on volume of 12,834,580 shares. The gain comes following a successful IPO last Friday, when the stock opened with a price of $23 per share.
Shares of Virgin America continued higher on Tuesday, following a successful IPO debut by the stock last Friday. Virgin America launched its IPO in what is being described as a robust environment for airline stocks in general. The IPO price opened at $23 with an offering of 13,337,587 shares, raising $306 million. The stock rose to 30, a surge of 30% on its opening day.
"Since its launch in 2007, Virgin America has provided travelers with a unique in-flight experience and has built a loyal customer base," said Bob Greifeld, CEO, Nasdaq. "Nasdaq is proud to welcome Virgin America to our family of innovative listed companies, and we look forward to supporting them as a public company."
The stock opened at 33.73 on Tuesday and continued to rise, closing at 37.05. The rise in stock price has caused the market capitalization of the company to surge to $1.59 billion, giving it a higher valuation than airline companies comparable in size.
Virgin America provides customers with a distinct flying experience through its mood-lit cabins, three classes of service and innovative fleet-wide amenities including touch-screen personal entertainment, WiFi and power outlets at every seat. It was named both the "Best U.S. Airline" in Conde Nast Traveler's Readers' Choice Awards for the past six consecutive years and "Best Domestic Airline" in Travel + Leisure's World's Best Awards for the past seven consecutive years.
"We've been working hard to get to this point. We feel fortunate that the markets are cooperating" said Virgin America CEO David Cush. "Long-term, we think 10% to 15% per year is a responsible rate of growth, an amount we can grow profitably..."
Other News About Virgin America, Inc.
Virgin America IPO Soars; Is the Stock Still a Buy?
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Union Headwinds, Industry Tailwinds For Virgin America At IPO
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