Production of next-generation Acela Express fleet underway
Stadler unveils TEX Rail Flirt DMU
Siemens invests in remote monitoring specialist Wi-Tronix
DB consortium selected for California high speed rail
Judge puts the skids on state’s proposed rail trail
Amtrak's CEO shares his vision for rail's future
Flight Rail: a new type of train?
America’s short lines play the long game
New York rail operator bolsters security after London bombing
A money-losing Florida railroad running behind schedule on its own projections has put off what would have been the year’s biggest initial public offering so far.
Virgin Trains USA Inc., which shuttles passengers between Miami and West Palm Beach and struck a licensing deal last year with billionaire Richard Branson, sought to raise as much as $538 million in an IPO that was set to price Tuesday.
“As we explored a public offering, a number of alternative financing sources became available that allow us to keep the company private and meet our growth strategies,” Ben Porritt, a spokesman for the Miami-based company, said in an emailed statement.
Virgin Trains may return to the equity market at a later time, said a person familiar with the matter who asked not to be identified because the decision hadn’t been made public at the time.
The offering, which would have valued the company at as much as $3.15 billion, had been expected to price below the marketed price range of $17 to $19 a share, a person familiar with the matter said Monday.
The company is planning to extend its high-speed luxury passenger service to Orlando, home of Disney World. It’s also planning to begin service connecting Southern California to Las Vegas. Those expansions could help increase annual ridership 37-fold to 20.8 million passengers within five years, the company said in its IPO filing.
Tuesday’s IPO decision follows previous delays for Virgin Trains. Last year, the company, owned by Fortress Investment Group private equity funds, had to push back startup dates along the Florida corridor and thus missed its passenger forecast by about half, losing $87.1 million on $5.2 million in revenue in the first nine months.
The IPO was seen as a test for a new listings market that’s already been hamstrung by jittery investors worried about an ongoing trade war with China and the specter of the U.S. government shutting down again if President Donald Trump and Congress fail to sign off on a new spending agreement by Friday’s deadline.
Indeed, the five U.S. IPOs that priced in January raised a combined $353 million, the worst month since January 2016.
Virgin Trains has faced skepticism, too.
This article first appeared on www.bloomberg.com
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2019 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.