Virgin Australia soared 11.4% in its market debut, closing at A$3.23 per share and boosting its market capitalisation to A$2.58bn ($1.7bn).

The IPO marks the airline’s return to the Australian Securities Exchange after a four-year absence under Bain Capital ownership.

The offering, priced at A$2.90 per share, attracted strong institutional demand, with indicative orders exceeding the offering size during the bookbuild. The success of the listing is expected to inject fresh momentum into Australia’s currently subdued IPO market.

Bain Capital, which acquired Virgin for A$3.5bn including liabilities during its 2020 restructuring, has reduced its holding from nearly 70% to 39.4% post-IPO. Qatar Airways, which recently invested in the airline, maintains a 23% stake, according to the prospectus.

Virgin’s Chief Executive Dave Emerson said the company’s strong domestic focus – accounting for 90% of operations – has helped insulate it from geopolitical volatility. The airline has also resumed long-haul services to Doha via a lease agreement with Qatar Airways.

The IPO was managed by Goldman Sachs, UBS, and Barrenjoey, which are set to receive a 2% fee on proceeds, with a further 1% incentive fee potentially payable.

Virgin disclosed that it has hedged 98% of its first-half 2026 fuel requirements and 86% for the second half, capping Brent oil exposure at $70 per barrel.

With a 34.4% share of the domestic market compared to Qantas’s 37.5%, Virgin is positioning itself as a stronger competitor in the post-listing phase, while Bain Capital retains significant upside exposure.

Source: Reuters

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.