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SYDNEY, June 4, 2025 — Virgin Australia, owned by U.S. private equity giant Bain Capital, is preparing to re-enter the public markets with a A$685 million (US$442.8 million) initial public offering (IPO), according to a term sheet seen by Reuters.
The planned IPO will see Bain sell roughly 30% of its stake in the airline at a fixed offer price of A$2.90 per share. This move values Virgin Australia at A$2.32 billion on a fully diluted basis. The sale includes 236.2 million shares, and proceeds are expected to bolster the company’s growth and recapitalization plans as it emerges from the pandemic era.
Bain Capital has not commented publicly on the IPO.
The float marks a significant step in Virgin Australia’s post-pandemic recovery journey. The airline collapsed into voluntary administration in April 2020 after the COVID-19 pandemic grounded most global travel and left the company saddled with debt. Bain Capital acquired Virgin Australia later that year in a deal reportedly worth around A$3.5 billion, including assumed liabilities.
Since the takeover, Bain has refocused the carrier on domestic and short-haul international routes, trimmed operating costs, and repositioned Virgin as a mid-market airline to compete effectively with both low-cost and premium rivals.
Market analysts see the IPO as a litmus test for investor appetite for aviation stocks in a still-recovering global travel environment. Despite recent macroeconomic headwinds, Australia’s domestic travel market has rebounded strongly, with Virgin regaining significant market share from competitors like Qantas and Jetstar.
The offering will provide an opportunity for public investors to participate in Virgin’s next phase, with Bain expected to remain the airline’s majority shareholder after the listing. The IPO is slated to take place on the Australian Securities Exchange (ASX), although an official listing date has not yet been disclosed.
If successful, the offering could be one of the largest IPOs in Australia this year and a milestone for the airline’s transformation under Bain’s stewardship.
More details are expected in the coming weeks as the company begins investor roadshows and finalizes regulatory approvals.
