Virgin Australia looks to raise $685m in IPO

The news: Bain Capital-owned Virgin Australia is looking to raise $685 million in a long-awaited initial public offering.

The numbers: As first reported by the Financial Review and confirmed to Capital Brief by a spokesperson for Bain, the airline's offer price has been set at $2.90 per Virgin share, around 7x the earnings forecast for the 2025 financial year. The offer size reflects 30% of Virgin's total issued capital.

Bids from investors are due on Thursday afternoon, the AFR reported.

The context: Bain Capital is looking to return the airline to the ASX after a five-year hiatus. It bought Virgin in 2020 for $700 million, taking on over $5 billion of its debt.

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.