Richard Branson’s satellite launch company, Virgin Orbit, will make its stock market debut on the Nasdaq through a merger with special purpose acquisition company NextGen Acquisition Corporation II.
“I’m very excited we are taking Virgin Orbit public, with the support of our partners at NextGen and our other wonderful investors,” Branson said in a statement. “It’s another milestone for empowering all of those working today to build space technology that will positively change the world.”
A SPAC is a shell company with no active business operations that are listed on major exchanges where investors can buy shares. They use funds raised by their sponsors and investors to acquire other companies.
The deal, which values Virgin Orbit at approximately $3.2 billion, will list the company’s shares under the ticker symbol VORB.
The transaction will provide the combined company with up to $483 million in cash proceeds, including up to $383 million of cash held in the trust account of NextGen and a fully committed PIPE led by Boeing and AE Industrial Partners offering $100 million at $10 per share.