Billionaire Richard Branson’s Virgin Galactic will become the world’s first publicly traded space-tourism venture by merging with an investment firm listed in New York.
Social Capital Hedosophia will have a 49% stake in the combined business, according to a statement Tuesday. That will raise about $800 million for Virgin Galactic as it nears its first commercial flight, a spokesman for the space company said. Social Capital Hedosophia shares advanced 2.6% in pre-market U.S. trading.
Branson said Virgin Galactic has made “great progress” in its test-flight program and is on track to begin commercial services, allowing it to “open space to more investors and thousands of new astronauts.” The share sale will help fund Virgin Galactic until its spaceships can operate and generate a profit. More than $1 billion has been raised since the company was founded in 2004, initially from Branson, with an Abu Dhabi investment company taking a stake in 2010. The entrepreneur suspended talks on a $1-billion injection from Saudi Arabia in October following the murder of journalist Jamal Khashoggi.
Virgin Galactic already has about 700 customers ready to pay at least $250,000 for a 90-minute flight to the edge of space, allowing them to experience weightlessness and see the curvature of Earth. Branson said in December that he expected to make his first flight in 2019, followed by commercial clients.
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