Virgin Australia has been valued at A$2.3 billion ($1.5 billion) following its initial public offering, with public trading set to resume.
Confirming its plans to resume trading on the Australian Securities Exchange (ASX) on 24 June, Virgin Australia says it will offer about 30.2% of its shares – or around 236.2 million shares – as part of the IPO. At A$2.90 per share, the offering is valued at around A$685 million.
The airline states that the funds raised from the IPO will allow “certain existing equity holders the opportunity to realise part of their investment in the company”.
The airline is owned by US private equity firm Bain Capital, which bought the airline in 2020 after it entered into voluntary administration during the Covid-19 pandemic.
Virgin Australia - the country’s second largest operator - was listed on the ASX for 16 years before it was bought over by Bain.
The carrier has long considered re-listing: in June 2022, then CEO Jayne Hrdlicka said the airline’s “long-term goal” was to be re-listed on the ASX, but did not commit to firm timeline.
In January 2023 Bain said it was seeking advice for a future IPO, as it sought to “reposition” it for “continued growth and long-term prosperity”.
In March this year, Qatar Airways announced plans to acquire 25% of Virgin Australia, as part of a strategic investment that sees the latter wet-lease Qatar’s Boeing 777s to restart long-haul operations.
