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3mo ago

Virgin Australia Secures Early Commitments for $685 Million IPO

The offering cuts Bain Capital’s stake to 39.4%, reflecting investor confidence in the airline’s five-year turnaround.

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

  • Institutional and anchor investors have backed the A$685 million share sale at A$2.90 per share, with bookbuild commitments secured ahead of schedule.
  • Bain Capital’s holding will shrink from about 70% to 39.4%, while Qatar Airways maintains a roughly 23% stake.
  • Strong demand reflects a recovery in domestic travel and expectations that the float signals robust consumer spending in Australia.
  • The IPO values Virgin Australia at A$2.32 billion on a fully diluted basis and is set to begin trading on the ASX in late June.
  • As part of its revival, the carrier plans to resume long-haul services through its partnership with Qatar Airways, bolstering its international network.