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.
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Why trade Virgin Orbit's listing with us?
We’re the only UK provider that allows you to take a position before, during and after an IPO.1
Trade or invest 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
Buy physical Virgin Orbit stock
Invest in Virgin Orbit stock and become a company shareholder
How to buy or trade Virgin Orbit shares
Pre-listing
Trade or invest 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 Virgin Orbit shares from the day of the merger. You can:
- Take a position on upward and downward share price movements with spread bets or CFDs
- Buy and own the shares through share dealing
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 spread bets or CFDs to speculate on share price movements. These derivatives let you take a position without owning the underlying shares, plus, you could receive various tax benefits.2 With spread bets and CFDs, 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.
Spread bets and 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
When investing in Virgin Orbit shares with us, you’ll buy and own physical shares using a share dealing account. Leverage isn’t available when you’re share dealing – so you’ll need to commit the full value of your position upfront. This increases your initial outlay compared to trading, but it also caps your risk at the price you paid for your shares (excluding additional fees).
Investing in shares will make you a shareholder – eligible to receive dividends and voting rights if the company grants them. You’ll profit if the share price increases above the price at which you opened your position. If you decide to sell your shares for less than you paid to buy them, you’ll take a loss.
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 in minutes
*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ 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
With 50 years of experience, we’re proud to offer a truly market-leading service
*Demo accounts are only available for spread betting and CFD trading.
Open a share trading account in minutes
Open a share trading account in minutes
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ 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
With 50 years of experience, we’re proud to offer a truly market-leading service
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
Try these next
Find out more about the biggest upcoming IPOs
Compare the differences between spread betting and CFD trading
Learn how to trade and invest in IPOs with us
1 We do not offer grey markets on all listings.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
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