Virgin Australia owners Bain Capital prepare to relist airline on ASX within months

Virgin Australia’s owners are pushing ahead with an IPO that could see the airline relisted on the ASX as early as June.

Virgin Australia’s US owners Bain Capital are pushing ahead with a planned initial public offering with sources confirming the airline could be relisted on the ASX as early as June.

Meetings with potential investors began this week led by new CEO Dave Emerson, who only took over the top job from Jayne Hrdlicka on March 14.

Although the meetings are intended to introduce Mr Emerson and provide fund managers with an update on the business, details of the proposed IPO timeline have also been shared with investors indicating Bain is keen to move quickly.

It’s understood a capital raising could begin in May ahead of a June listing, returning Virgin Australia to the ASX for the first time since 2020.

Price has not been determined but it’s expected Bain will put a healthy valuation on the business after selling a 25 per cent stake to Qatar Airways for an estimated $750m.

The private equity firm is also encouraged by Virgin’s recent record half year earnings of $439m, and the strength of Qantas shares which have climbed 65 per cent in the past 12 months, to $9.02.

In a further boost, Virgin Australia increased its domestic market share in the busy summer holiday period to pull ahead of rival Qantas, aided by the demise of Rex in mid-2024.

The Qatar Airways’ partnership is also considered to add value to Virgin with all regulatory approvals now in place for new international flights out of Sydney, Brisbane and Perth due to takeoff in June.

Virgin Australia is poised to return to the ASX for the first time in nearly 5 years.

An IPO has been talked about since Bain Capital rescued Virgin from administration, and became serious in 2023 before market volatility and personnel changes derailed plans.

It was announced in February 2024 Ms Hrdlicka would transition out of the role of CEO, which again put any hope of an IPO on ice with the Qatar Airways’ deal taking precedence.

The speed at which Bain Capital now appeared to be moving, did not suggest the listing was being rushed, sources said.

Rather, it’s understood much of the work had been done in 2023 to allow Bain to move at full throttle now the CEO transition has been finalised and the Qatar deal in place.

It will remain to be seen whether investors will be keen to sink their money into Virgin Australia after being burnt previously.

Virgin Blue as it was originally known first listed on the ASX in 2002 after raising $550m at $2.25 a share.

By mid-2006 the share price had lifted to $2.75 but it was all downhill from there, and when the airline was taken into administration with more than $7bn of debt, the share price was a miserable 8.6c.

Bain Capital declined to comment on the IPO process.

As well as Qatar Airways with a 25 per cent stake, Richard Branson’s Virgin holds a 5 per cent share of Virgin, and the Queensland Investment Corporation 2 per cent.

A QIC spokesman said they were being kept well informed about developments regarding the IPO.

“Our equity interest in Virgin Australia has been structured in a manner that ensures it is consistent with Bain Capital’s investment approach,” he said.

Originally published as Virgin Australia owners Bain Capital prepare to relist airline on ASX within months