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Virgin Galactic files documents to sell around $500 million shares
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The company’s shares tumbled the most in about seven months
Virgin Galactic filed documents to sell as much as $500 million in shares after a rocket-powered test flight by founder Richard Branson that won Wall Street praise as a “marketing coup”.
The success of the hour-long mission to more than 50 miles (80 kilometres) above Earth boosted Virgin Galactic’s plan to start offering tourism trips next year.
However, the shares tumbled the most in about seven months after the disclosure on Monday of the potential stock sale, which suggested the company’s need for additional funds as it prepares its commercial debut.
Virgin Galactic plunged 17 per cent to $40.69 at the market’s close in New York, the biggest decline since December 14.
The volatile shares, which have seesawed in recent weeks, doubled in the year to July 9 as the company got its test-flight programme back on track.
