Virgin Australia kicks off roadshow for June IPO: reports
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The news: Virgin Australia has kicked off roadshow meetings in Sydney, Melbourne, and Singapore as it eyes launching an initial public offering as early as May for a June listing.
The numbers: The Australian reports that the airline is targeting an initial public offering around $750 million, as it prepares for a mid-year listing on the ASX. The masthead says the group is considering a primary selldown of around 20% of the business, which is 25% owned by Qatar Airways.
Prospective investors have reportedly been told to consider the IPO coming in at around USD500 million ($790 million).
The context: Virgin owner Bain Capital is looking to return the airline the ASX after a five-year hiatus from the exchange. Bain bought Virgin in 2020 for $700 million, taking on over $5 billion of its debt.
Virgin shelved listing plans in 2023 due to unfavourable market conditions and operational disruptions. Advisors to the airline including Barrenjoey, Goldman Sachs, UBS and Reunion Capital, are reportedly keen to expedite listing plans to capitalise on positive market conditions.
The airline sold the 25% stake to Qatar Airways in 2024 for a rumoured $750 million, which would imply a $3 billion value.
The sources: The Australian, AFR, SMH, PE Insights
