(Reuters) - Railway system operator Virgin Trains USA said on Wednesday it is seeking to sell 28.3 million shares in its initial public offering, and raise as much as $538 million in net proceeds.
The IPO will value the company at roughly $3.2 billion at the upper end of its $17 to $19 target range. It expects to trade under the symbol “VTUS” on the Nasdaq stock exchange.
British billionaire Richard Branson's Virgin Group has agreed to purchase shares in Virgin Trains at its IPO price, Virgin Trains said in a regulatory filing. (bit.ly/2Tm7HRH)
The company was earlier known as Brightline and changed its name after it entered into a licensing agreement with Virgin to use its brand, name, and logo.
Virgin Trains operates an express passenger rail system in Florida, and is the first major private passenger intercity railroad service in the U.S. It plans to expand operations in Florida, Las Vegas and elsewhere in North America.
The company’s biggest shareholders include Fortress Investment Group, which has holdings in several fintech, energy and healthcare companies.
Reporting By Aparajita Saxena in Bengaluru