Virgin Australia Continues Discussions with Investors on IPO

Virgin Australia Engages Investors Ahead of Potential 2025 IPO

Virgin Australia’s majority owners are actively engaging with potential investors this week as they consider advancing with a long-anticipated initial public offering (IPO), according to reports from the Australian Financial Review. Representatives from Bain Capital, which holds a 68% stake in the airline, along with CEO Dave Emerson and the head of Virgin’s loyalty program, are meeting with fund managers to gauge interest in what could become Australia’s largest IPO in recent years.

Background and Ownership Structure

Virgin Australia was previously listed on the Australian Stock Exchange but was delisted in 2020 following its entry into voluntary administration. Bain Capital acquired the airline for approximately AUD 700 million (USD 450 million), assuming debts totaling AUD 5.15 billion (USD 3.3 billion). Since the acquisition, discussions about relisting the airline have surfaced intermittently, but no definitive plans had been announced until now.

Recently, Bain Capital sold a 25% stake in Virgin Australia for around AUD 750 million (USD 482 million), valuing the airline at approximately AUD 3 billion (USD 1.93 billion). Other shareholders include Virgin Group, which holds a 5% stake, and Queensland Investment Corporation with 2%.

IPO Plans and Market Context

Virgin Australia is targeting a public listing in June 2025, with the aim of raising AUD 685 million. This planned IPO comes amid ongoing market volatility and global trade tensions, factors that could present challenges to the offering. Despite these uncertainties, Bain Capital remains optimistic about the airline’s growth potential.

CEO Dave Emerson has highlighted that Virgin Australia is fundamentally different from its pre-administration iteration, describing the company as streamlined, efficient, profitable, and “re-invigorated.” In March, outgoing CEO Jayne Hrdlicka informed staff that the airline recorded a profit before interest and taxes of AUD 439 million (USD 282 million) in the last six months of 2024. Virgin Australia currently commands a 34.4% share of the domestic market, securing its position as the country’s second-largest airline.

The progression of the IPO will depend on the level of investor interest secured during this week’s meetings and prevailing market conditions. Should Bain Capital obtain sufficient commitments, the offering could proceed in the coming months.