Virgin Australia Eyes Market Reentry in Major IPO Push

Virgin Australia will re-list on the local stock market in a public offering aiming to raise more than US$400 million for the once-troubled airline, local media reported Wednesday. One of the few local rivals to Australia's Qantas, Virgin was on the brink of bankruptcy in 2020 as the Covid-19 pandemic brought international travel to a standstill. US private equity giant Bain Capital came to the airline's rescue after the Australian government refused to bail Virgin out.

Bain is now looking to sell a 30 percent stake in Virgin through an initial public offering on the Australian Securities Exchange, local media reported. The company was looking to raise some US$440 million (Aus$685 million) when it lists later in June, according to a string of reports in Australian media. Virgin Australia last traded on the exchange in 2020 before it delisted at the height of its financial woes. Qatar Airways earlier this year bought a 25 percent stake in Virgin Australia, injecting foreign competition into a market dominated by Qantas. Qantas -- along with its low-cost brand Jetstar -- has a more than 61 percent share of the Australian market. Virgin Australia said it would not be commenting on the reports.