Virgin Australia announces IPO details, board changes
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The news: Virgin Australia has confirmed the details of its initial public offering, expecting to list on the ASX on 24 June under the ticket code VGN.
The numbers: According to a prospectus lodged with ASIC and the ASX, the IPO is comprised of an offer of 236.2 million shares at a price of $2.90 per share, raising $685 million and valuing the company at $2.3 billion.
Investors participating in the offer are expected to hold 30.2% of shares on issue, with the remainder being held by existing investors, which include Bain Capital, Qatar Airways Group, Virgin Group and Queensland Investment Corporation.
The context: The country's second largest airline group also announced a number of changes to its board, including the appointment of former Macquarie chair Peter Warne as independent non-executive chairman.
Virgin Australia CEO Dave Emerson has joined the board as managing director, while company director Melinda Conrad has also been appointed as an independent non-executive director.
Ryan Cotton, who has served as chairman since November 2020 will remain on the board as non-executive director. Mark Drusch, Barnaby Lyons and Ray Hass have left the board.
What they said: “After making significant progress in Virgin Australia’s transformation and with the backing of leading global airline Qatar Airways Group as a strategic investor, we believe it is now appropriate for the business to transition to a publicly listed company,” said Warne.
“This provides an opportunity for new investors to share in the success of Virgin Australia as the airline enters its next phase.
“I commend all those involved in orchestrating Virgin Australia’s remarkable turnaround and setting the business up for long-term success.”
The source: Virgin Australia media release
