Virgin Orbit’s IPO is on its way. CEO Dan Hart announced that the company would go public by merging SPAC earlier this week.
But should you invest in Virgin Orbit’s IPO? This is what we know …
Virgin Orbit OPC: About Business
Virgin Orbit is a small satellite launch service. Richard Branson founded the company in 2017 and is owned by the Virgin Group. Its goal is to revolutionize the small satellite industry and serve military and commercial customers at the bottom of the space market.
The company uses an unconventional launch technique compared to Jeff Bezos ’Blue Origin and Elon Musk’s SpaceX. Virgin Orbit uses a special “air launch” system by connecting a spacecraft to the landing gear of a Boeing 747 aircraft. When conditions are right, the aircraft sends the spacecraft into orbit. The aerial launch approach provides more flexibility than industry standard vertical launch rockets, the company said.
Virgin Orbit has launches reserved for customers ranging from the United States Space Force and the United Kingdom Royal Air Force. The company’s customer base also includes commercial customers such as Swarm Technologies, SITAEL of Italy and GomSpace of Denmark.
In January, Virgin Orbit successfully reached orbit during its second test flight with its LauncherOne system. The company modified a Boeing 747-400 to launch a rocket into space. The plane took off for a launch site 50 miles south of the California Channel Island. Once the plane reached 35,000 feet, the booster was released, fired its own engine and ascended into orbit. The launch of Virgin Orbit proved that affordable access to space is possible, according to the company.
In a press release, the company stated that the successful demonstration will allow the company to move into commercial service for its next mission. Let’s see how Virgin Orbit’s IPO could help fund growth initiatives …
In a press release, Virgin Orbit stated …
Revenues from the business combination and PIPE transaction are expected to provide growth capital to expand rocket manufacturing to meet customer demand and fund the growth of its space solutions business and Virgin product development initiatives. Orbit.
Advertising can help give a company depth to facilitate growth. But investors interested in Virgin Orbit’s IPO should know that the company did not choose to go public through a traditional IPO.
Virgin Orbit SPAC IPO
An SPAC is also known as a blank check company. It is a shell company with no active business operations. They are listed on the major stock exchanges where investors can buy shares. Companies use funds raised by their sponsors and investors to acquire other companies. In this case, Virgin Orbit is combined with SPAC NextGen Acquisition Corp. II (Nasdaq: NGCA).
Virgin Orbit founder Richard Branson commented …
The Virgin Orbit team has demonstrated its ability to create new ideas, new approaches and new capabilities. They are building on the incredible foundation of their rapid transition to successful business operations to find new ways to solve big problems that elevate our clients ’incredible ideas over and over again. I am very excited to make it public on Virgin Orbit, with the support of our NextGen partners and our other wonderful investors. It is another milestone in empowering all those who work today to build a space technology that will positively change the world. “
George Mattson and Greg Summe, co-founders of NextGen, added …
We are delighted that our search for a great company, with strong organic growth in a large and growing market, disruptive technology and a world-class management team has led to our partnership with Virgin Orbit. The space economy is developing rapidly and Virgin Orbit is well positioned to benefit from its competitive launch capability at any time, from anywhere on Earth, to any orbit and tilt. This is a truly unique and differentiating ability. We have worked with Sir Richard and the Virgin Group on various projects, including Virgin Galactic, over the past few years and admire their vision and commitment as they have built Virgin Orbit from an idea to a commercial reality. We look forward to leveraging our industrial and financial experience, along with our experience in leadership and governance of public companies to help Virgin Orbit deliver the next chapter of its exciting journey as a public company.
So what are all the details you need to know about Virgin Orbit’s IPO?
Details of the Virgin Orbit OP presentation
Virgin Orbit’s IPO began when the company signed a merger agreement with NextGen Acquisition Corp on August 23rd. Former Goldman Sachs and PerkinElmer executives founded the acquisition company for special purposes.
Virgin Orbit and NextGen plan to complete the business combination by the end of 2021. Virgin Orbit will retain its name and the shares will be listed on the Nasdaq Stock Exchange under the symbol “VORB”.
The deal values the combined company at $ 3.2 billion. At the close, the combined company expects to generate $ 483 million in cash revenue. This includes a $ 100 million PIPE round raised by investors, including Boeing and AE Industrial Partners.
Investors can find more information about Virgin Orbit’s IPO on the latest NextGen 8-K form filed with the Securities and Exchange Commission (SEC).
As always, be sure to do your own research before investing. IPOs can be volatile during the first few months. And stock prices can change quickly. But if you’re interested in your IPO investment, check out our recent IPOs and our IPO calendar. We update it daily to give you the latest news on upcoming and featured IPOs.
If you are struck by space-related investment opportunities, check out these space stocks to watch out for this year.
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About Aimee Bohn
Aimee Bohn graduated from Towson University College of Business and Economics. His training in marketing research helps him discover valuable trends. IPO research and other trends have been its main focus over the past year. When Aimee doesn’t write for Investment U, you’ll usually find her doing graphic design or traveling with friends.
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