LONDON-Virgin Mobile U.K. has cut the price of its shares in its pending initial public offering by 20 percent due to “tough market conditions,” according to international press reports.
Virgin Mobile shares will now be priced between $3.70 and $4 rather than the original $4.35 to $5.28 per share. This gives the group a value of around $1 billion. In addition, the company will now list 25 percent of its shares rather than the originally planned 37- to 43-percent stake.
Reports said institutional investors balked at the original premium price targets compared with rivals Vodafone Group plc and MmO2 plc.
Virgin Mobile U.K. is a mobile virtual network operator targeted at the youth market. The group also has a U.S. subsidiary.
