The airline is set to re-enter the ASX and looking to raise $685 million in its initial public offering, Reuters reports.
Key Takeaways
- Virgin Australia is set to IPO on the Australian Securities Exchange, seeking $685 million.
- It will sell 236.2 million shares, which will value the airline at $2.32 billion, according to a term sheet seen by Reuters.
- Bain Capital, the airline’s owner, will have its shareholder reduced to 39.4%, while stakeholder Qatar Airways will keep its 23% share.
Key background
Virgin Australia has staged a remarkable financial comeback in recent years, transforming from a pandemic-era collapse to one of the most closely watched IPOs of 2025.
After entering voluntary administration in April 2020 with nearly $7 billion in debts, the airline was acquired by Bain Capital for A$700 million and restructured under then CEO Jayne Hrdlicka. The turnaround strategy – focused on cost-cutting, operational efficiency, and repositioning in the mid-market segment – delivered its first profit in over a decade in FY2023, with $129 million in net earnings.
That momentum continued into FY2024, with the airline reporting $5.4 billion in revenue.
In 2024, Qatar Airways agreed to acquire a 25% stake in the airline, with a plan to introduce long-haul flights from Australia to Doha the following year. The new services were touted to add $3 billion to the Australian economy.
Hrdlicka also announced she would step down that year, with Dave Emerson replacing her in March this year.
Big number
$685 million. That’s how much the Bain Capital-owned airline is looking to raise in its IPO. It’s set a price of $2.90 per share with 236.2 million shares on offer. That will value the company at $2.32 billion on a fully-diluted basis, according to a term sheet seen by Reuters.
Crucial quote
“While we continue to operate as usual, we’ve been conducting preparatory work for a potential Initial Public Offering (IPO), including recent introductory meetings with potential investors in Australia and overseas,” Emerson said in a note to staff, according to Australian Aviation.
What we know
The new chief executive set out on a series of investor meetings earlier this year to promote the upcoming IPO, and in May, told eligible staff they’d receive a $3,000 ‘take-off grant’ in the relisting.
What to watch
We don’t have a date for the IPO, but reports say Bain Capital has approved the listing a month from its June 30 balance date. It has also committed to not sell any shares until after the December half results.
Tangent
Air New Zealand topped the list for the World’s Safest Airlines for 2025, thanks to its stellar safety record of no serious incidents or crashes. Qantas came in second, and Virgin Australia in sixth. You can check out the full list here.
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