Branson’s Virgin Galactic Space-Tourism Venture to Go Public (1)

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 July 9. 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.

By merging with a listed entity, Virgin will bypass the need for an initial public offering, avoiding a costly investor roadshow and the challenge of ...