Bain targets November for Virgin Australia’s $665m IPO

BLOOMBERG

Bain Capital is targeting November to relist Virgin Australia Airlines Pty Ltd through an initial public offering that could raise about A$1 billion ($665 million), the country’s largest in two years, according to people familiar with the matter.
The private equity owner plans to sell down about 40% of its stake in the carrier, which it rescued in a A$3.5 billion deal in 2020, said the people, who asked not to be identified as the information is private. A listing could give Virgin Australia a valuation of nearly A$2.5 billion, the people said. Its rival Qantas Airways has a market value of around A$11.6 billion. Bain Capital and its advisers plan to resume meeting prospective domestic investors by the end of July, the people said. The airline had completed international roadshows and put the local ones on hold as Virgin Australia CEO Jayne Hrdlicka took leave around the death of husband, the people said.
Deliberations are ongoing and details of the IPO including size and timeline could still change, they said. A spokesman for Bain Capital responded to a query by referencing Virgin Australia Chairman Ryan Cotton’s note to staff, seen by Bloomberg News, saying the business is in “good shape” and planning for the IPO was “well advanced.”
“While there is still no date set and our ultimate window of opportunity will depend on market conditions, we are hopeful this process will progress over the coming quarters,” Cotton had said.