Warren, N.J. - Virgin Mobile USA, a mobile virtual network operator joint venture between U.K. billionaire Richard Branson's Virgin Group and Sprint Nextel, has filed to raise up to $100 million in an initial public offering on the NYSE.

The number of shares to be offered and price range for the offering have not yet been determined.

Launched in July 2002, the mobile network targets the youth market, with its pre-paid calling plans and focus on exclusive entertainment deals.

The company has so far not been profitable, losing out when third parties purchase its cheap phones and resell them for use on other networks.

"I think Sprint and Virgin are just looking to get out of this investment," independent wireless industry analyst Peter Gorham told Red Herring.

The company intends to use the funds to pay back debt and reclaim part of Sprint Nextel's stake in the venture; Virgin Mobile USA is slated to continue utilizing Sprint Nextel's network until 2027.

The company will trade on the NYSE under the symbol "VM."

Related Links:
http://tinyurl.com/2lt73u

http://tinyurl.com/35uql7 (Red Herring)

http://www.virginmobileusa.com