Virgin Australia gets $685m IPO ready for lift-off amid strong investor demand
Private equity owner Bain Capital will sell close to 30 per cent of Qantas Airways' biggest rival, expecting to raise $685 million via the initial public offering. The $2.90 price tag for the stock represents a multiple of seven times the airline's expected earnings this financial year, the firm said in its pitch to sharemarket investors.
Market sources said the joint lead managers of the offering believed demand from domestic and global anchor investors was 'well in excess of the offer size prior to opening of the bookbuild'. It's unclear when the stock will start trading on the ASX.
The IPO represents the culmination of years of waiting for the listing of the airline. Bain Capital bought the then struggling airline in 2020, taking it off the sharemarket after it had been placed in administration, facing soaring costs and the impact of the COVID-19 shutdown on travel.
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