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4d ago

Virgin Australia Prices A$2.90 Shares in A$685m IPO, Reducing Bain Capital Stake

The share sale cuts Bain Capital’s stake to about 40%; Qatar Airways will hold 23.4%; the airline is set to relist on the ASX on June 26.

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

  • Virgin Australia launched its IPO, offering roughly 30% of shares at A$2.90 each to raise A$685 million.
  • The A$2.90 price equates to seven times the airline’s projected earnings for the financial year ending June 2025.
  • Following the float, Bain Capital’s holding will drop from 70.2% to about 40%, with Qatar Airways retaining 23.4% and management holding 6.4%.
  • Joint lead managers Goldman Sachs, UBS and Barrenjoey opened the bookbuild on strong domestic and international investor demand.
  • Proceeds are earmarked for expanding international services through the Qatar Airways partnership, intensifying competition with Qantas.