Virgin Mobile USA looks at float

SIR Richard Branson is reportedly considering selling a stake in his wireless joint venture, Virgin Mobile USA, via an initial public offering.

The company, a 50-50 joint venture between Branson's Virgin Group and America's Sprint, has asked investment banks for proposals on taking it public. The banks' reports are being submitted to the two companies as early as this week, according to the Wall Street Journal.

While the size of the planned IPO is unknown, Virgin Mobile is a strong international brand and any offering would be likely to raise millions of dollars for Branson. Early estimates have suggested such a move would value the company at about $2bn (£1.1bn).

Virgin Mobile USA has emerged as one of the fastest growing wireless carriers in the States, adding more than 2m subscribers since it started service in mid-2002. Targeting the higher-spending youth market with a pay-as-you-go mobile service, the company has made a splash, with racy adverts and slick phones.

The far-larger Sprint has added about 2.8m wireless customers in the same period. Virgin Mobile buys wholesale voice minutes from Sprint but handles customer-end functions such as billing and distribution.

The move, which follows the float of Virgin's UK mobile arm last July, comes as Branson looks to fund other ventures such as his plan to send tourists into space through Virgin Galactic.