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2mo ago

Virgin Australia Soars in $685 Million Return to ASX

This oversubscribed float underlines investors’ faith in the revamped carrier, promising to energise Australia’s stagnant IPO landscape.

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A Virgin Australia Airlines plane takes off from Kingsford Smith International Airport in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott/File Photo
Virgin Australia re-enters the local share market, a dramatic comeback from near bankruptcy more than four years ago.
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Overview

  • The airline sold 236.2 million shares at A$2.90 each, raising A$685 million and valuing the company at roughly A$2.3 billion.
  • Shares surged 11.4 percent to close at A$3.23 on debut, driven by strong institutional demand and market optimism following a Middle East ceasefire deal.
  • Bain Capital’s stake fell from about 70 percent to 39.4 percent while Qatar Airways retained a 23 percent holding post-IPO.
  • The carrier has refocused on domestic routes and outsources its international services to Qatar Airways under a wet-lease agreement for flights to Doha.
  • To mark its relisting, Virgin Australia offered discounted fares on key routes and its successful float is expected to revive Australia’s lacklustre IPO market.