Virgin Australia still taking to investors about IPO

Virgin Australia Engages Investors Ahead of Potential 2025 IPO
Virgin Australia’s majority owners are in talks with potential investors this week as they weigh whether to move forward with a long-anticipated initial public offering, according to the Australian Financial Review. Representatives from Bain Capital—which holds a 68% stake in the airline—alongside CEO Dave Emerson and the head of Virgin’s loyalty program, are meeting with fund managers to assess interest in what could be Australia’s largest IPO in several years.
Virgin Australia was previously listed on the Australian Stock Exchange but delisted in 2020 after entering voluntary administration. Bain Capital acquired the airline for approximately AUD700 million (USD450 million) and assumed debts totaling AUD5.15 billion (USD3.3 billion). Since then, discussions about relisting have surfaced periodically, but no concrete plans have materialized until now.
Bain Capital recently sold a 25% stake in Virgin Australia for around AUD750 million (USD482 million), valuing the airline at about AUD3 billion (USD1.93 billion). Other shareholders include Virgin Group with a 5% stake and Queensland Investment Corporation holding 2%.
Virgin Australia is now targeting a public listing in June 2025, aiming to raise AUD685 million. The IPO comes amid ongoing market volatility and global trade tensions, which could pose challenges to the offering. Despite these headwinds, Bain Capital remains confident in the airline’s growth prospects.
CEO Dave Emerson has emphasized that Virgin Australia is a fundamentally different company compared to its pre-administration days, describing it as streamlined, efficient, profitable, and “re-invigorated.” In March, outgoing CEO Jayne Hrdlicka told staff that the airline posted a record AUD439 million (USD282 million) profit before interest and taxes in the last six months of 2024. Virgin Australia currently holds a 34.4% share of the domestic market, solidifying its position as the country’s second-largest airline.
If Bain Capital secures sufficient investor commitments from this week’s meetings, the IPO could proceed in the coming months, with the final decision hinging on market conditions.

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