Virgin Australia to launch $443 million IPO as owners bet on ripe investor appetite

Virgin Australia to launch $443 million IPO as owners bet on ripe investor appetite

Virgin Australia, one of Australia's most iconic airlines, is set to return to the stock market with a $443 million initial public offering (IPO) on Wednesday, June 24, 2025. The IPO, Australia's largest for the year so far, is expected to be a significant milestone for the airline and the aviation sector as a whole [1].

The IPO will see Bain Capital's stake drop to 39.4% from about 70%, while Qatar Airways will retain a 23% holding. The shares will be offered at a fixed price of A$2.90 per share, valuing the company at A$2.32 billion on a fully diluted basis [2].

Virgin Australia's return to the stock market comes amid a rebound in domestic tourism and a strong local demand for air travel. The airline's domestic market share stands at 34.4% as of March, not far behind archrival Qantas, which had 37.5% [2].

The airline's IPO is being carried out through a front-end book-building process, allowing institutional investors to lodge their bids until Thursday. The stock is due to start trading on June 24 [2].

Virgin Australia's IPO is one of the most closely watched deals in Australia in years. A successful listing will be seen as a vote of confidence in prospects for a solid recovery in the nation's consumer spending. The airline's revival efforts over the last few years have seen it pare back its international business and focus on domestic routes [2].

Investors are buzzing with anticipation as bids for the IPO close on Thursday afternoon. The deal is structured for long-term momentum, with new investors gaining access to a leaner, rejuvenated airline that weathered pandemic headwinds and emerged profitable [1].

Virgin Australia's comeback story is a testament to the resilience of the aviation sector and the potential for a successful turnaround. The airline's IPO is expected to be a significant event for investors and the aviation industry alike.

References:
[1] https://macholevante.com/news-en/192213/virgin-australia-readies-high-flying-asx-return-billion-dollar-ipo-set-to-shake-up-aviation/
[2] https://www.zawya.com/en/business/aviation/virgin-australia-returns-to-stock-market-with-launch-of-443mln-ipo-hrhgesst