Small satellite launch company Virgin Orbit has started trading on the Nasdaq after closing its merger with NextGen Acquisition, a special purpose acquisition company. NextGen has now changed its name to Virgin Orbit Holdings. To celebrate the listing, Virgin Orbit’s executive team and Richard Branson will ring the opening bell at the Nasdaq MarketSite on 7 January.
Virgin Orbit said earlier that the transaction will provide the merged group with cash proceeds of up to USD 483 million upon closing. This includes a USD 100 million fully committed PIPE and up to USD 383 million in cash held in NextGen's trust account. The deal values Virgin Orbit at a pro forma enterprise value of around USD 3.2 billion.
Existing Virgin Orbit shareholders are made up to Virgin Group, Mubadala Investment and management/employees. They will roll 100 percent of their equity into the combined group in exchange for around 85 percent of the merged business. NextGen's public shareholders will own around 10 percent of the combined group, with PIPE investors and SPAC sponsor controlling around 3 percent and 2 percent respectively.
