Virgin Blue Prospectus
Join Date: Sep 2000
Location: Sydney, NSW, Australia
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The about face by Branson after the public offer has closed is interesting. Let me tell you some of the reasons being expounded.
1) Concerns the competition from both sides i.e QF and Jetstar will take its toll on DJ
2) The institutions are reluctant to invest due to the low number of liquid shares
The success or otherwise of the mums and dads DJ float will now be in the hands of the institutions.
1) Concerns the competition from both sides i.e QF and Jetstar will take its toll on DJ
2) The institutions are reluctant to invest due to the low number of liquid shares
The success or otherwise of the mums and dads DJ float will now be in the hands of the institutions.
Join Date: Aug 2001
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From a pragmatic viewpoint, why would one invest in an airline when shares of its diversified parent (Patrick) are available?
The thinking being that, if VB does well, then Patrick will do well; but if VB tanks, then it is unlikely to take Patrick down with it.
Sounds good to me but what the hell would I know?
The thinking being that, if VB does well, then Patrick will do well; but if VB tanks, then it is unlikely to take Patrick down with it.
Sounds good to me but what the hell would I know?
Join Date: Mar 2001
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Wed "Herald Sun"
Fund kings want more of Virgin
Olga Galacho
03dec03
OFFSHORE institutions are believed to be pressuring Virgin Group to release more shares into the bookbuild that gets underway today for the float of its cut-price airline Virgin Blue.
Virgin Blue said yesterday its parent company might consider increasing the shares it sells as part of the IPO, but would not make a final decision until the weekend.
Communications chief David Huttner said yesterday Virgin Blue was satisfied with the outcome of the retail offering, which closed on Friday.
In a statement yesterday, Virgin Group said it might release up to 4 per cent of the 29.1 per cent stake it originally intended to retain in Virgin Blue.
It said it was considering increasing the size of the offer to institutions because of the "strong response to the retail offering, considerable interest from Australian and international investors, and investor requests for greater liquidity".
Patrick Corporation, which jointly owns Virgin Blue with Virgin Group, intends to keep a 45 per cent interest in the listed airline.
Combined with Virgin's anticipated original stake of 29.1 per cent, this means less than 26 per cent of Virgin Blue stock is being offered.
Only about 15.5 per cent of that will be available to institutions.
An unnamed source said the airline wanted to woo a number of overseas institutions on to the register, but they were reluctant to invest unless greater liquidity was created.
While Mr Huttner would only confirm that institutions both here and overseas were eager to see more stock freed up, it's believed key US investors are behind the push.
"We won't make the call until we see the book and all will be confirmed by Monday, when the shares start trading," Mr Huttner said.
"There are worse problems you can have than no one wanting to sell your stock and everyone wanting to buy it," he said.
If Virgin's stake is sold down to 25.1 per cent, the free float of the company will increase to 29 per cent, or about $612 million at the mid-point of the indicative price range.
The airline will sell between 281 million and 312 million shares at between $1.80 and $2.25 a share, with the final price to be determined at the end of the bookbuild on Friday.
In other news yesterday, an upbeat outlook from Qantas about its planned no-frills airline, Jetstar, helped to push the carrier's shares up 2 per cent to $3.41.
Jetstar is designed to challenge Virgin Blue's 30 per cent market share and Qantas claims it will run from a cheaper cost base than its rival.
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Fund kings want more of Virgin
Olga Galacho
03dec03
OFFSHORE institutions are believed to be pressuring Virgin Group to release more shares into the bookbuild that gets underway today for the float of its cut-price airline Virgin Blue.
Virgin Blue said yesterday its parent company might consider increasing the shares it sells as part of the IPO, but would not make a final decision until the weekend.
Communications chief David Huttner said yesterday Virgin Blue was satisfied with the outcome of the retail offering, which closed on Friday.
In a statement yesterday, Virgin Group said it might release up to 4 per cent of the 29.1 per cent stake it originally intended to retain in Virgin Blue.
It said it was considering increasing the size of the offer to institutions because of the "strong response to the retail offering, considerable interest from Australian and international investors, and investor requests for greater liquidity".
Patrick Corporation, which jointly owns Virgin Blue with Virgin Group, intends to keep a 45 per cent interest in the listed airline.
Combined with Virgin's anticipated original stake of 29.1 per cent, this means less than 26 per cent of Virgin Blue stock is being offered.
Only about 15.5 per cent of that will be available to institutions.
An unnamed source said the airline wanted to woo a number of overseas institutions on to the register, but they were reluctant to invest unless greater liquidity was created.
While Mr Huttner would only confirm that institutions both here and overseas were eager to see more stock freed up, it's believed key US investors are behind the push.
"We won't make the call until we see the book and all will be confirmed by Monday, when the shares start trading," Mr Huttner said.
"There are worse problems you can have than no one wanting to sell your stock and everyone wanting to buy it," he said.
If Virgin's stake is sold down to 25.1 per cent, the free float of the company will increase to 29 per cent, or about $612 million at the mid-point of the indicative price range.
The airline will sell between 281 million and 312 million shares at between $1.80 and $2.25 a share, with the final price to be determined at the end of the bookbuild on Friday.
In other news yesterday, an upbeat outlook from Qantas about its planned no-frills airline, Jetstar, helped to push the carrier's shares up 2 per cent to $3.41.
Jetstar is designed to challenge Virgin Blue's 30 per cent market share and Qantas claims it will run from a cheaper cost base than its rival.
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Reuters
Thursday December 4, 5:48 PM AEDT
Virgin float expected to be priced at top end
SYDNEY, Dec 4 (Reuters) - The float of Richard Branson's discount Australian airline Virgin Blue was heavily oversubscribed on Thursday and is likely to be priced at the top end of the range, an industry source said.
The offer to institutions, which is scheduled to close to institutions at noon (0100 GMT) on Friday, and last week's retail offer is expected to raise more than A$600 million ($438 million).
Virgin has set an indicative price range of A$1.80 to A$2.25 a share.
"The institutional response has been pretty overwhelming, very strong and at the top end of the range," an industry source told Reuters.
The sale of shares to local and offshore institutions opened on Wednesday and final pricing will be determined over the weekend. The airline is scheduled to list December 8.
Fund managers were also tipping strong demand for the initial public offer but urged caution on Virgin Blue's performance going forward.
"There is still a lot of uncertainty hanging over how the company operationally performs," said David Maywald, investment analyst at fund manager Constellation Capital Management.
"There are a lot of guys who are keen to get exposure to this one because they've had the best years of the business model while there is limited supply."
Virgin Blue said this week it may increase the number of shares it sells in the float because of strong demand, raising the potential value of the offer to A$612 million.
The move means up to 29 percent of the three-year-old carrier may end up in public hands, instead of 25 percent previously.
Virgin may be left with 25.1 percent of the airline after the float, leaving transport group Patrick Corp with 45 percent and management five percent.
Virgin Blue, which will rank among Australia's top 70 companies, has nearly 30 percent of the domestic Australian market, competing with Qantas Airways Ltd , which is laying plans to launch a no-frills airline of its own.
Virgin Blue carried nearly seven million passengers in 29 aircraft in fiscal 2003 and has forecast a rise to 10 million passengers in 44 planes by the end of September 2004.
The IPO price for the float values the company at up to A$2.3 billion.
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Thursday December 4, 5:48 PM AEDT
Virgin float expected to be priced at top end
SYDNEY, Dec 4 (Reuters) - The float of Richard Branson's discount Australian airline Virgin Blue was heavily oversubscribed on Thursday and is likely to be priced at the top end of the range, an industry source said.
The offer to institutions, which is scheduled to close to institutions at noon (0100 GMT) on Friday, and last week's retail offer is expected to raise more than A$600 million ($438 million).
Virgin has set an indicative price range of A$1.80 to A$2.25 a share.
"The institutional response has been pretty overwhelming, very strong and at the top end of the range," an industry source told Reuters.
The sale of shares to local and offshore institutions opened on Wednesday and final pricing will be determined over the weekend. The airline is scheduled to list December 8.
Fund managers were also tipping strong demand for the initial public offer but urged caution on Virgin Blue's performance going forward.
"There is still a lot of uncertainty hanging over how the company operationally performs," said David Maywald, investment analyst at fund manager Constellation Capital Management.
"There are a lot of guys who are keen to get exposure to this one because they've had the best years of the business model while there is limited supply."
Virgin Blue said this week it may increase the number of shares it sells in the float because of strong demand, raising the potential value of the offer to A$612 million.
The move means up to 29 percent of the three-year-old carrier may end up in public hands, instead of 25 percent previously.
Virgin may be left with 25.1 percent of the airline after the float, leaving transport group Patrick Corp with 45 percent and management five percent.
Virgin Blue, which will rank among Australia's top 70 companies, has nearly 30 percent of the domestic Australian market, competing with Qantas Airways Ltd , which is laying plans to launch a no-frills airline of its own.
Virgin Blue carried nearly seven million passengers in 29 aircraft in fiscal 2003 and has forecast a rise to 10 million passengers in 44 planes by the end of September 2004.
The IPO price for the float values the company at up to A$2.3 billion.
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