Are Virgin Atlantic to move for a shock stock market listing? It has become obvious in recent days that Richard Branson is turning to the London market, hoping to raise enough funds to be able to plug the airline’s gaping losses.
But why is this such a shocking turn of events? What does this mean for Branson, the airline, and the stock market? Our financial experts attempt to answer these questions.
What This Means For Branson And Virgin
There is no escaping it: by selling off some of his shares on the London stock market, Branson is set to lose overall control of his Virgin Atlantic Company.
Currently, he owns 51% of the business, but by selling several of his shares, this is set to dwindle, just like his influence.
Sources claim that after bailout refusals from the UK government, and even the proffering of his own Necker Island to raise funds for a £1.2 billion rescue package, selling off shares is to be one of the last few options remaining to keep the company afloat.
Future For The Airline…?
There has been no way for airline companies around the world to avoid the collateral damage caused by the Coronavirus pandemic.
With tight travel restrictions in place globally, passenger numbers have dramatically decreased, and with this, job numbers have fallen too. The only numbers that seem to be up for travel companies such as Virgin Atlantic are the profit losses.
However, Branson’s stock market move ignites fresh hope that Virgin Atlantic will be able to secure enough capital to keep the company going.
…And The Stock Market?
Concerning the stock market, the news means that both private investors and big City firms will be able to get a previously unattainable slice of Branson’s Virgin Atlantic pie.