Virgin Australia is set to return to the stock market with a $443 million Initial Public Offering (IPO). This is currently the largest IPO in Australia for 2025. Institutional investors will have the chance to bid for shares until Thursday.
The successful listing of Virgin Australia would be a strong vote of confidence in consumer spending in the Australian market, according to industry analysts. Virgin Australia’s return to the Australian Securities Exchange (ASX) will involve a $685 million raising. This will reduce Bain Capital’s stake in the airline to 40 percent.
Brokers are offering shares at $2.90 each, which is a discount compared to rival Qantas. Demand from fund managers has reportedly been strong. The float has been in flux for the past two years but has finally gained momentum.
It signifies a major restructuring of Virgin Australia’s financial strategy under Bain Capital’s direction. Bain Capital acquired the airline during its administration in 2020.
Virgin Australia’s ASX comeback
The IPO is happening at the same time as the Australian Securities and Investments Commission (ASIC) releasing 50 submissions into its public-private markets review. This adds complexity to the timing of Virgin’s market return. As Virgin Australia gets ready to re-enter the public market, the aviation industry will be closely watching its performance, especially compared to its main competitor, Qantas.
The expected strong initial demand for shares suggests confidence in the airline’s revitalized management and strategic direction. Flight Centre’s Graham Turner has shared his perspective on the re-listing. Despite the challenges, there is optimism about Virgin Australia’s future.
According to Turner, the airline’s former Bain consultant, now playing a major role, is poised to make impactful moves following the re-listing. Virgin Australia’s strategic shift and Bain Capital’s reduced stake mark a pivotal moment in the airline’s history. It offers a renewed focus on competitiveness and market presence.
The successful completion of the $685 million raising will be crucial for the airline’s future growth and stability. Market participants are eagerly awaiting the outcomes of this major financial move.
