Are Virgin Atlantic considering a shock stock market listing? Recent reports suggest that Richard Branson is turning to the London market in the hopes of raising enough funds to plug the airline’s losses.
But why is this such a surprising move? What does it mean for Branson, the airline, and the stock market? Financial experts analyze the situation.
What This Means For Branson And Virgin
It’s clear that by selling off some of his shares on the London stock market, Branson will lose overall control of his Virgin Atlantic Company.
Currently, he owns 51% of the business, but selling several of his shares will decrease his ownership and influence.
Sources claim that after bailout refusals from the UK government and even the offer of his own Necker Island to raise funds for a £1.2 billion rescue package, selling shares is one of the last remaining options to keep the company afloat.
Future For The Airline…?
The Coronavirus pandemic has caused significant damage to airline companies worldwide. With travel restrictions in place, passenger numbers have decreased, leading to job losses and profit losses for companies like Virgin Atlantic.
However, Branson’s stock market move offers hope that Virgin Atlantic can secure enough capital to keep the company going.
…And The Stock Market?
The news means that both private investors and big City firms will have access to a previously unattainable slice of Branson’s Virgin Atlantic pie.