Virgin Orbit listing
Virgin Orbit is set to go public via a special purpose acquisition company (SPAC) merger. Explore how you can gain exposure to Virgin Orbit before and after its listing.
Start trading today. Call +44 (20) 7633 5430, or email sales.en@ig.com to talk about opening a trading account. We’re here 24/5.
Contact us: +44 (20) 7633 5430
Start trading today. Call +44 (20) 7633 5430, or email sales.en@ig.com to talk about opening a trading account. We’re here 24/5.
Contact us: +44 (20) 7633 5430
Why trade Virgin Orbit's listing with us?
We’re the leading World CFD provider1 and allow you to take a position before, during and after an IPO.2
Trade in the Virgin Orbit SPAC before the listing
Take a position on the SPAC company NextGen Acquisition Corp. II that could merge with Virgin Orbit – before the merger
Trade Virgin Orbit shares with derivatives
Deal once Virgin Orbit shares are in the open stock market – you can buy, sell or short
Trade with a world leading platform
Trade in Virgin Orbit stock with our award-winning platform3
How to trade Virgin Orbit shares
Pre-listing
Trade in NextGen Acquisition Corp. II - the SPAC Virgin Orbit could merge with - before Virgin Orbit's listing.
After the merger happens, your NextGen Acquisition Corp. II shares would be converted into Virgin Orbit shares automatically.
Post-listing
Take a position on upward and downward Virgin Orbit share price movements with CFDs from the day of the merger.
Trading vs investing in Virgin Orbit shares
Trading and investing are different in many ways. When trading Virgin Orbit shares with us, you’ll use CFDs to speculate on share price movements. These derivatives let you take a position without owning the underlying shares. You can speculate on shares that are rising (known as going long) or falling (known as going short) in value. If your prediction is correct, you’ll make a profit, but if you’re wrong about the market movement, you’d take a loss.
CFDs are leveraged products, which means that you only need to commit a deposit upfront – called margin – to receive full market exposure. But, bear in mind that while margin can increase your profits, it can also increase your losses – so it’s important to take steps to manage your risk.
Learn more about the impact of leverage on your trades
Virgin Orbit SPAC deal vs IPO: what’s the difference?
A SPAC deal, also known as a reverse takeover or merger, differs from a traditional IPO in a number of ways. For one, SPACs raise money from the public market before acquiring a private company.
Below are some of the key differences between a SPAC deal and an IPO.
Special purpose acquisition company (SPAC) deal
- The private company goes public by merging with a SPAC, which is already publicly listed
- The process of listing is quicker for the private company as fulfilling regulatory requirements, raising funds and other aspects of going public are already covered by the SPAC
- The deal is signed with the SPAC sponsor at a fixed price that has been negotiated before the announcement of going public
- The private company makes a deal with one party only, the SPAC
Initial public offering (IPO)
- The private company goes public on its own through the traditional IPO process
- Raising money, organising the IPO and paying for it can be costly and time consuming
- Negotiations on the size and target share price of the listing happen after the announcement has been made
The private company raises capital through deals with several parties, and employs a bank to oversee the listing
Open a share trading account - apply today
Open a share trading account - apply today
Fast execution on a huge range of markets
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
We have over 45 years of experience offering a truly market-leading service
*IG Group’s total markets
Open a share trading account - apply today
Open a share trading account - apply today
Fast execution on a huge range of markets
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
We have over 45 years of experience offering a truly market-leading service
*IG Group’s total markets
How do IPOs work?
IPOs work by having a company list its shares for participants to buy and sell on the open market. Some reasons a company may want to go public include raising capital for expansion, paying off debts, attracting and retaining talent or improving liquidity.
The company must start by arranging for a third party to conduct a comprehensive audit, which looks at the company’s financials. Thereafter, it needs to get a registration document ready with the relevant exchange commission.
If the commission approves the registration, the company will list a specific number of shares on a stock exchange, at a price determined by an investment bank. The investment bank will also be the company’s underwriter for the IPO. Once the company is publicly listed, shares will be available through the chosen stock exchange.
FAQs
What are the risks of trading a SPAC merger?
Some of the key risks involved in trading a SPAC merger include:
- Missing important company information that could impact share prices, like pending legal cases and intellectual property that isn’t patented
- Elevated market expectations that might not materialise and low demand following the merger
- Companies not meeting their target market cap – which could deter future investment
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1Based on revenue (published financial statements, October 2023).
2We do not offer grey markets on all IPOs.
3Best Finance App, Best Multi-Platform Provider and Best Platform for the Active Trader as awarded at the ADVFN International Financial Awards 2024.
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