Australian airline company Virgin Australia aims for a valuation of $2.3 billion in its initial public offering (IPO), as per reports.

Australian airline Virgin Australia is planning a return to the Australian Securities Exchange (ASX) and seeks to gather $685 million through an initial public offering, according to Reuters.

, and Administrator

2025 June 8 . 10:01 AM

2 min read

Australian airline, Virgin Australia, intends to re-emerge on the Australian Stock Exchange and... — Australian airline, Virgin Australia, intends to re-emerge on the Australian Stock Exchange and aims to gather $685 million through its initial public offering, according to Reuters' reporting.

Australian airline company Virgin Australia aims for a valuation of $2.3 billion in its initial public offering (IPO), as per reports.

Virgin Australia Returns to the ASX with a Huge $685 Million IPO

Get ready for takeoff, mate! Virgin Australia is about to touch down on the Australian Securities Exchange (ASX) and they're planning to raise a massive $685 million. That's right, six hundred and eighty-five million dollars!

Bain Capital, the airline's current owner, is about to see their shareholder status get shaved down to 39.4%, while Qatar Airways will hold onto their solid 23% stake. The company's valuation will sit at around $2.32 billion on a fully-diluted basis.

The IPO is a triumphant return for Virgin Australia, who spent five year's away from the ASX after undergoing some major financial overhauls. After nearly bankrupting with a staggering $7 billion in debts back in 2020, Bain Capital swooped in and acquired the airline for A$700 million.

Led by CEO Jayne Hrdlicka, the turnaround strategy focused on cost-cutting, operational efficiency, and positioning in the mid-market segment. The gamble paid off, delivering profits for the first time in over a decade. That's right, for the first time in over a decade, Virgin Australia ended FY2023 with a net income of $129 million and continued the momentum into FY2024, reporting $5.4 billion in revenue.

In 2024, Qatar Airways purchased a 25% stake in the airline, with plans to introduce long-haul flights from Australia to Doha the following year. These services were said to potentially add $3 billion to the Australian economy. Hrdlicka announced her departure in 2024, with Dave Emerson stepping up as the new CEO in March this year.

So, are you ready to get on board with Virgin Australia's big IPO? The airline's shares are being offered at a fixed price of $2.90 AUD per share, with 236.2 million shares on offer. This IPO is set to be the largest Australian IPO for the year, so don't miss out on this chance to ride along with one of Australia's most-watched companies as they take flight once again!

Enrichment Data:- Amount Raised: The initial public offering (IPO) aims to raise $685 million AUD, the largest Australian IPO for the year so far[1][2].- Share Price: The shares are being offered at a fixed price of $2.90 AUD per share[1][2].- Valuation: Virgin Australia's valuation will be approximately $2.32 billion AUD on a fully diluted basis. The enterprise value, including debt, is around $3.6 billion AUD with $1.31 billion in net debt[1][2].- Ownership Changes: - Bain Capital: Its stake will decrease from about 70% to 39.4% post-IPO[2][3]. - Qatar Airways: It will retain a 23% holding in the airline[2][3].

Preparing for a significant move in the business world, Virgin Australia is planning to invest a massive $685 million in the Australian Securities Exchange (ASX) through an initial public offering (IPO). This IPO, set to be the largest of the year, offers shares at a fixed price of $2.90 AUD each.