Shares Of Richard Branson's Virgin Galactic Plunged 13% Due To An Additional Issue
Quotes are falling after the announcement of the release of Virgin Galactic new shares worth $0.5 billion.
Shares of aerospace company Virgin Galactic fell 13.78% to $20.71, according to trading data on the New York stock exchange at 16:43 GMT.
Richard Branson's company's securities are getting cheaper amid the announcement of an additional issue. Virgin Galactic announced its intention to issue about 20.5 million new shares to raise $529 million.
The quotes were also affected by the report: at the end of the second quarter, the company recorded zero revenue and a net loss of $62.52 million. A year ago, revenue was $638 million, and a loss was $44.1 million.
Virgin Galactic is the world's first public space tour operator. In 2019, the company went to the stock exchange after the merger with SPAC Social Capital Hedosophia Holdings.
Branson's company has not yet made any commercial flights: so far, it only conducts test runs. In the fall of 2020, Virgin Galactic plans to carry out the first test flight with the participation of two pilots. The company said that if successful, Richard Branson himself will go into space in the first quarter of 2021.
UBS forecasts that the space tourism market will grow to $3 billion by 2030. Virgin Galactic's main competitors in this area are SpaceX, Boeing, Roscosmos, and Blue Origin.
In 2019, CNBC reported that more than 600 people had already booked suborbital flights on Virgin Galactic spaceplanes. Ticket price - $250 thousand.