Virgin Australia Aims for A$1 Billion Listing on ASX in November – Insider Reveals
According to a source with direct knowledge of the matter, Bain Capital’s Virgin Australia airline is targeting a A$1 billion listing on the Australian Securities Exchange (ASX) in November.
If successful, this deal would mark the largest new share sale in nearly two years, following GQG Partners’ A$1.18 billion listing in October 2021.
Bain, a U.S.-based private equity firm, announced in January its plans to explore the relisting of Virgin Australia. The firm had acquired the airline for A$3.5 billion ($2.45 billion) in 2020, including liabilities, after it entered voluntary administration, which is the Australian equivalent of Chapter 11 bankruptcy.
Although the timeline for the listing has varied, Bain Capital is now aiming for a transaction in November, as per the insider. The source, who requested anonymity due to the sensitive nature of the information, also mentioned that the exact size of the stake Bain will sell is yet to be determined but could range between 30% and 40%.
The initial public offering (IPO) of Virgin Australia could potentially value the carrier, which primarily focuses on domestic operations, at A$2.5 billion to A$3 billion. The final valuation will be determined following additional briefings with potential investors, including management and analyst presentations.
Earlier reports from Reuters indicated that Virgin Australia intended to raise up to A$1 billion through the IPO.
Bain Capital declined to provide any comments regarding the matter.
Bloomberg News first reported the details of the November timeline on Tuesday.