Good job, Mr, Branson! It was a good take-off for Virgin America Airlines on the first day after its initial public offering.
The San Francisco-based carrier raised $306.8 million in its initial public offering on Thursday, pricing out 13.3 million shares at $23 a share. Today, the stock soared and closed at exactly $30 a share. That outperforms the average 13 percent gain IPOs have had this year, according to IPO ETF manager Renaissance Capital.
“Even though we are a high-quality product, we have a low cost model,” Virgin America Chief Executive David Cush told CNBC. “Others have deviated from it, we’ve stayed true to it.”
The airline, partly owned by Virgin Group CEO Sir Richard Branson, reported its first profit last year since its inception nine years ago.
According to Fortune.com, operating revenue totaled $1.12 billion for the first nine months of the year, up from $1.06 billion a year ago. The company also reported net income of $56.2 million through Sept. 30, well above the $4 million loss of a year ago as it inched toward profitability.
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