Virgin Mobile USA (VM) debuts, although it's been around the block

Virgin Mobile USA, Inc. (NYSE: VM) launched its IPO right after the open today. Billionaire Richard Branson's pay-as-you-go cellular telecom services that uses the Sprint Nextel (NYSE: S) network has raised $412.5 million based on 27,500,000 shares at $15.00 per share, which is actually at the lower end of the $15.00 to $17.00 range. Was the reception poor, or was it conservative?

The lead underwriter and book runner was Lehman Brothers, and joint book-runners were Merrill Lynch and Bear Stearns. The over-allotment option for underwriters is listed as 4,125,000 shares. Not much has changed since the original coverage of the IPO at the filing date.

As of June 30, 2007, Virgin claimed 4.83 million customers. Revenues and net loss for the year ended December 31, 2006 were approximately $1.1 Billion and -$36.7 million; Revenues and net income for the six months ended June 30, 2007 were approximately $666.9 million and $26.5 million, respectively. As of June 30, 2007 and December 31, 2006, members' accumulated deficit was approximately $(614.4) million and $(643.9) million, respectively.

It seems as though the interest faded here, and part of it may be the entire venture status combined with a cellular market that is deemed as just about fully matured in the lower-end pricing plans. Shares did trade under the $15.00 pricing for a bit after the open, but are up to $15.40 at the 30-minute mark.

Jon C. Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter and he does not own securities in the companies he covers.