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2w ago

Virgin Australia prices $685 million IPO at $2.90 ahead of ASX return

The IPO will see Bain Capital reduce its stake by roughly 30%, paving the way for expanded Qatar Airways-backed international services

Aircraft from Australia's second largest airline, Virgin Australia, sit on the tarmac at the domestic terminal of Sydney Airport in Australia, August 19, 2018. Picture taken August 19, 2018. REUTERS/David Gray/File Photo
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Overview

  • The $2.90 per-share price values the airline at seven times its expected earnings for the current financial year.
  • Bain Capital aims to raise about $685 million by selling close to 30% of its holding through the offer.
  • Joint lead managers report domestic and global anchor investor demand has exceeded the IPO’s available shares prior to bookbuild close.
  • Under a deal struck in October, Qatar Airways holds a 25% stake and will provide aircraft and crews for new services between Australian capitals and Doha.
  • The IPO bookbuild is underway, but the exact date for Virgin Australia’s re-listing on the ASX has not yet been confirmed.