Virgin Australia has officially launched its IPO bookbuild, aiming to raise $685 million as it prepares to return to the public market, according to reports.
The airline, which was delisted in 2020 following financial struggles, is positioning itself for renewed investor confidence amid a rebound in air travel demand.
The offering via Bain Capital (who will reportedly reduce its stake in the airline to 40%) marks a significant milestone in Virgin Australia's post-restructuring strategy. The IPO is priced at $2.90 per share, reflecting a $3.6 billion valuation - approximately seven times the airline’s projected 2025 earnings, writes The Australian Financial Review.
The seven-times earnings multiple is based on 2025 financial projections, though actual performance will depend on broader economic conditions and airline industry trends.
This pricing suggests a competitive stance in the aviation sector, balancing growth potential and investor expectations. Analysts note that Virgin Australia's financial recovery and market positioning will be key factors in post-listing performance.
Virgin Australia's return to the Australian Securities Exchange (ASX) comes amid strong domestic travel demand and evolving industry dynamics. The airline has focused on cost efficiencies and fleet optimisation, aiming to strengthen its market share with rival Qantas.
Investors will watch closely to assess whether Virgin can sustain profitability in a competitive landscape. The ASX listing is expected to attract institutional and retail investors seeking exposure to Australia's aviation sector.
