Shares in airline Virgin Australia Holdings (ASX: VGN) traded at an 8% premium to the offer price when they relisted on the Australian Securities Exchange (ASX) on Tuesday.
Five years after the company collapsed under a mountain of debt, the shares flew back to the Australian bourse at $3.12 each, compared with the $2.90 per share price in the initial public offer (IPO) which raised A$685 million (US$442 million).
They traded between $3.10 and $3.18 and last traded at $3.13, which capitalises Australia’s second largest airline behind Qantas Airways at $2.447 billion, as 9.9 million of the 782 million shares changed hands at the time of writing.
Chair Peter Warne said the listing marked the start of an exciting and fresh chapter for Virgin Australia as a publicly listed company.
“Our listing reflects the remarkable work undertaken over the past five years to transform the airline and position it for long-term success,” Warne said in a media release.
“It is great news not just for our people, but for travellers who rely on Virgin Australia being a strong, resilient and competitive airline.”
CEO Dave Emerson said Virgin Australia was entering its next phase with a clear strategy, a simplified operating and commercial model, and a talented team of people.
“We are proud of how far we have come and energised by the opportunities ahead as we continue to realise our ambition of being Australia’s most loved airline,” Emerson said.
Virgin Australia collapsed in 2020 with $7 billion debts before being purchased later the same year for $3.5 billion by private equity giant Bain Capital, which retains a 40% stake after the IPO and listing.
Qatar Airways owns 23.4% of the airline, which operates more than 100 aircraft on 76 domestic and short-haul international routes.
Qantas (ASX: QAN) shares were trading up 26.9 cents (2.7%) at $10.35 at the time of writing, implying a market value of $15.25 billion.
