Virgin Mobile USA is planning an initial public offering of as much as $100 million in Class A common stock.
The wireless communications services provider said Sprint Nextel and Virgin Group, which was founded by Richard Branson, will own two different classes of stock and be able to exercise control over management and business affairs.
Details such as the specific number of shares and an estimated price range were not disclosed in a preliminary offering document that the Warren, New Jersey-based company filed with the US Securities and Exchange Commission.
Lehman Brothers, Merrill Lynch and Banc of America Securities LLC will underwrite the IPO. It is seeking a New York Stock Exchange listing under the symbol "VM".
Virgin Mobile said operating revenues totalled $1.1 billion at the end of 2006, compared with $990 million the previous year.
Net losses at the end of 2006 were $36.7 million, down from $102.8 million in 2005, according to the IPO prospectus.
Launched as a joint venture in July 2002, the company said it had about 4.88 million customers as of 31 March. It offers per-minute and monthly prepaid services targeting customers mainly in their early teens to mid-30s.
Virgin Mobile uses the Sprint PCS network and buys wireless network services at a price based on Sprint Nextel's cost of providing these services, plus a specified margin under an agreement that runs through 2027.
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