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Highlights:
Virgin Australia plans a swift ASX debut with a set listing date later in June
Pricing metrics are influenced by comparative performance against Qantas
Bain Capital to retain a significant stake post-offer, with a staged exit plan
Virgin Australia Holdings Ltd (ticker: VAH), the nation's second-largest airline, is finalising its return to the Australian Securities Exchange, aiming to join the ASX 200 index. The company operates in the transport and logistics sector, with over sixty domestic routes, and is targeting a late-June listing.
The listing process is being executed at an accelerated pace. Key institutional backers are already locked in, and the formal bookbuild is on schedule for completion in early June. The rapid timetable is reportedly linked to broader market movements, particularly those impacting Qantas Airways Ltd (ASX:QAN), as pricing comparisons form part of the valuation case.
Wilsons has joined the roster of advisers to facilitate retail allocations, aiming to source additional interest from individual brokerage clients. Alongside Wilsons, the advisory team includes Barrenjoey, Goldman Sachs, and UBS, with deal structuring designed to emphasise competitive valuation versus Qantas.
The IPO valuation aligns Virgin Australia with global peers in terms of net profit multiples, benchmarking against standard ratios used in the airline industry. The offer is positioned to reflect relative value, based on current trading levels in the sector.
Bain Capital, which acquired Virgin Australia several years ago following its administration, will retain a minority interest post-listing. A staged lock-up mechanism has been implemented, delaying further sales from Bain until after the full financial results for the 2026 fiscal year. Qatar Airways holds a substantial minority interest, with the remainder of ownership including staff and executive management.
The broader valuation of Virgin Australia includes consideration of net debt, bringing the enterprise value to a higher figure than the equity component alone. This enterprise value is derived from a multiple of the airline’s forecast EBITDA, aligning with benchmarks used in recent aviation and transportation listings.
The company’s leadership, under CEO Dave Emerson, has overseen significant structural changes since its post-acquisition restructuring. The airline has returned to a growth trajectory with its domestic network, frequent flyer program Velocity, and staffing numbers across major Australian cities.
This IPO structure mirrors elements seen in the recent float of Guzman y Gomez, which similarly featured cornerstone investors and a staggered public offer window. Retail interest is scheduled to open in early June upon the release of the formal prospectus, with broker bids expected in the following week.
The return of Virgin Australia to public markets is notable in a year where new listings have been limited. The subdued IPO pipeline reflects challenges in private equity funding as well as changes in interest rate dynamics. With private capital less active, public markets may see increased participation in upcoming offerings.
