Virgin Australia, backed by Bain Capital, is targeting an AUD685m ($443m) initial public offering, in what would be the largest airline listing in Asia in a decade, signalling the private equity firm’s confidence in renewed investor appetite as equity markets rebound from a dealmaking slowdown, according to a report by Bloomberg.
The US-based private equity firm is set to offload a 30% stake in the airline at AUD2.90 per share, implying a market capitalisation of approximately AUD2.3bn for Virgin Australia. Shares are slated to begin trading on the ASX on 24 June.
The IPO comes amid a sharp recovery in the Australian equity market, with the S&P/ASX 200 index rallying roughly 15% since April. The timing marks a strategic move by Bain to monetise part of its investment following its 2020 acquisition of the airline during the depths of the Covid-19 crisis.
The offer price represents a multiple of around 7x forecast FY25 earnings – offering a discount to rival Qantas Airways, which currently trades at around 10x forward earnings. The valuation reflects Virgin’s relatively smaller scale, narrower earnings base, and a less developed loyalty programme.
Post-listing, Bain will retain a 40% interest in the carrier, while Qatar Airways – already a strategic investor – will hold approximately 25%. The float also marks Virgin Australia’s return to public markets following its delisting and administration in 2020. Its prior listing was hampered by low liquidity and a shareholder register dominated by airline partners that contributed limited capital support.
Goldman Sachs Australia, UBS Securities Australia, and Barrenjoey Markets are acting as joint lead managers and bookrunners on the deal.
