Virgin Galactic’s stock fell more than 3% following the sale of a portion of its founder and British billionaire Richard Branson’s stake for nearly $300 million.
According to a regulatory filing, Branson sold more than 10 million shares between Aug. 10 and 12.
The announcement comes less than a month after Virgin Galactic completed its first fully crewed test flight into space with Branson aboard.
Branson also sold shares worth more than $150 million in April.
Virgin Atlantic Airways Ltd., the airline majority-owned by Branson’s group, is considering a London public offering following last year’s USD 1.7 billion rescue package, which included approximately 200 million pounds from Branson.
“The Virgin Group remains Virgin Galactic’s largest single shareholder,” Branson’s parent company said in a statement. It added that it “intends to use the net proceeds from this sale to support its portfolio of global leisure, holiday, and travel businesses that are still being impacted by the COVID-19 pandemic, as well as to develop and grow new and existing businesses.”
Branson is selling his third stake since taking Virgin Galactic public via a SPAC in 2019, with previous sales totaling $504.5 million in May 2020 and $150.3 million in April 2021. Since going public, Branson has recouped more than $950 million of his investment in the space company through stake sales. Virgin Galactic raised more than $1 billion in investment prior to going public, according to a filing with the Securities and Exchange Commission.
The company’s stock was last down at $25.09 in Friday’s premarket trade.
The sales occurred as a result of some Wall Street analysts downgrading the stock, citing a lack of scheduled flights as the company begins a months-long maintenance update.
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