Branson's Virgin Orbit plans to go public through a US$3.2 bn SPAC deal

3 min read | August 23, 2021 03:12 PM PDT | By Team Kalkine Media

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Branson's Virgin Orbit plans to go public through a US$3.2 bn SPAC deal — Image source: Andrew Angelov,Shutterstock

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Highlights

Virgin Orbit is in talks for a Nasdaq listing under the ticker 'VORB' after a US$3.2 billion SPAC deal with NextGen Acquisition Corp II (NASDAQ:NGCA).

The Boeing Company (NYSE:BA) will also invest in the deal.

Stocks of NextGen (NASDAQ:NGCA) gained 1.91% in the intraday trading on Monday.

Billionaire Richard Branson's Virgin Orbit plans to go public through a US$3.2 billion SPAC deal with special purpose acquisition company NextGen Acquisition Corp II (NASDAQ:NGCA), the company said on Monday.

Virgin Orbit, a satellite launch service provider, is currently in talks with NextGen for a NASDAQ listing under the ticker 'VORB'.

Meanwhile, the Boeing Company (NYSE:BA) said that it would invest in the deal. The planemaker has been facing various obstacles in its own space program.

The combined entity hopes to earn about US$483 million from the merger deal. The NextGen (NGCA) stock was priced at US$9.86 at 1:18 pm on Aug 23, up 1.91 percent from its previous close after the deal was announced. Its market cap is US$472 million.

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NextGen, co-founded by George Mattson and Gregory Summe, had completed its NASDAQ IPO listing on March 22, 2021.

Boeing plans to invest in the deal through the PIPE mode, a SPAC-related fundraising round. Virgin Orbit hopes to raise US$100 million through the fundraising round after receiving commitments.

The Chicago-based planemaker also has investments in Branson's space-tourism company Virgin Galactic Holdings Inc. (NYSE:SPCE). The stocks of Virgin Galactic rose 4.10% trading after the announcement.

Source: pixabay

Besides Boeing, private equity firm AE Industrial Partners LP will also invest in the deal through PIPE, Virgin Orbit said.

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Boeing’s Starliner spacecraft, which was expected to send NASA astronauts to the International Space Station, was postponed earlier this month due to its faulty vaults. “It’s another milestone for empowering all of those working today to build space technology that will positively change the world,” the Wall Street Journal quoted Branson as saying about the space mission.

Branson has around 80 percent stake in the Virgin Group. The stake is owned by Mubadala Investment Co., a UAE-based sovereign-wealth.

Earlier this year, he had already traveled to space in his Virgin Galactic spacecraft.

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Virgin Orbit has completed its two satellite launch programs this year.

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