Virgin America, the airline backed by billionaire Richard Branson, jumped more than 20 per cent in its trading debut after raising $307 million (€246 million) in its US initial public offering (IPO).
The shares climbed 23 per cent to $28.23 in early trading in New York, after they were priced at $23.
Virgin America will use the proceeds from the IPO to pay down debt, manage the airline and pay for capital expenditures associated with the 10 Airbus Group NV A320 aircraft due for delivery in 2015 and 2016, chief executive David Cush said.
“We’re going to be true to our model” by keeping costs low and emphasising service, he said. “We think by staying small, by focusing on the market, that we will value the product that we put out there – that we can serve our customers and serve our shareholders.”
Virgin America, based in California, began flights in August 2007 and is the first IPO by a US airline in three years.
- Bloomberg