Bain Capital is preparing to raise AUD685m ($443m) through an initial public offering of Virgin Australia, in what would be the largest airline listing in Asia in a decade, according to Bloomberg.

The deal underscores Bain’s confidence in the rebound of equity markets following a prolonged dealmaking slowdown.

Bain plans to sell a 30% stake in the airline at AUD2.90 per share, implying a market capitalisation of around AUD2.3bn. Virgin Australia shares are expected to debut on the ASX on 24 June.

The IPO comes amid a broader market recovery, with the S&P/ASX 200 index up 15% since April. Bain acquired Virgin Australia out of administration in 2020, during the height of the Covid-19 crisis, and is now seeking to partially monetise that investment.

The IPO pricing implies a valuation multiple of 7x forecast FY25 earnings, below Qantas’ current 10x multiple. This discount reflects Virgin’s smaller operational scale, lower earnings base, and more limited loyalty programme.

Following the listing, Bain will retain a 40% stake in the airline, while Qatar Airways – already a strategic investor – will hold approximately 25%. The listing marks Virgin Australia’s return to public markets after its 2020 delisting and administration, which were marred by liquidity issues and a concentrated shareholder base that lacked funding support.

Goldman Sachs Australia, UBS Securities Australia, and Barrenjoey Markets are serving as joint lead managers and bookrunners on the deal.

Source: Bloomberg

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