Virgin Orbit, Richard Branson's satellite launch company, will go public through a SPAC merger with NextGen, according to The Wall Street Journal.
The SPAC (special purpose acquisition company) procedure is used by small companies that need to raise additional capital, avoiding a number of disclosure requirements.
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According to preliminary estimates, after the merger, the combined Virgin Orbit and NextGen company could reach a valuation of $3.2 billion. Virgin Orbit expects to raise $483 million during the IPO, including $100 million in private investment in public equity (PIPE). Once the transaction is completed, the shares of the combined company will trade on the stock exchange NASDAQ under the ticker VORB.
In June, news broke about Virgin Orbit's plans to go public through a merger with NextGen II, which is led by former Goldman Sachs partner George Mattson.