Bain Capital Postpones $700m Virgin Australia IPO Until Next Year

Bain Capital has put off its plans for an initial public offering of Virgin Australia airline to next year, a person with knowledge of the matter said on Tuesday.

The U.S.-based private equity firm will consider listing in 2024 after assessing market conditions, said the source who declined to be identified as the discussions were private.

Bain said in January it would explore re-listing Virgin, which it bought for $2.45bn including liabilities in 2020 after it was placed in voluntary administration, the closest Australian equivalent to Chapter 11 bankruptcy.

Reuters had reported that Bain was aiming for a $700m listing on the Australian Securities Exchange (ASX), which would be the largest new share sale in almost two years since GQG Partners raised $757m in a 2021 listing.

However, the timeline of the deal has fluctuated, with the transaction previously being aimed for mid-year, but then reportedly moved to November.

Bain Capital declined to comment. Virgin refers all queries about the IPO to Bain.

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Details of the postponement were first reported by Bloomberg News on Tuesday, citing sources.

There have been just 16 listings in Australia’s stock market this year, the lowest number of issuance since 2009, that raised about $500million, according to LSEG data.

Bain said on Tuesday that Virgin Australia had returned to a profit for the first time in 11 years for fiscal 2023, buoyed by a strong recovery in travel demand following the COVID-19 pandemic.

The carrier reported a statutory net profit after tax of $82.93m for the full year ended June 30, 2023, compared with a loss of $362m in 2022.

Source: Reuters

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