Virgin Australia in Talks with Investors Ahead of Possible IPO

Virgin Australia is engaging with potential investors this week as majority owner Bain Capital weighs whether to move forward with a long-anticipated initial public offering (IPO), according to the Australian Financial Review. Bain Capital, which owns approximately 68% of the airline, is joined in the discussions by CEO Dave Emerson and the head of Virgin’s loyalty program.

The investor meetings aim to gauge interest in what could become one of the largest IPOs on the Australian market in recent years. Virgin Australia was previously listed on the Australian Securities Exchange but delisted in 2020 after entering voluntary administration. Bain Capital acquired the airline for around AUD700 million (USD450 million) and assumed AUD5.15 billion (USD3.3 billion) in debt.

Though relisting efforts have been delayed multiple times, Bain recently sold a 25% stake in Virgin Australia for approximately AUD750 million (USD482 million), valuing the airline at around AUD3 billion (USD1.93 billion). Minority shareholders include Virgin Group (5%) and Queensland Investment Corporation (2%).

CEO Dave Emerson recently described Virgin Australia as a revitalized and profitable business. Former CEO Jayne Hrdlicka reported the airline earned a record AUD439 million (USD282 million) in EBIT during the final six months of 2024, while maintaining a 34.4% share of Australia’s domestic aviation market.

If investor response proves strong, Bain Capital may proceed with an IPO in the coming months, depending on market conditions. Virgin Australia’s streamlined operations and improved financial performance could position it well for a return to public markets.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com