Virgin Australia confirms long-awaited return to | Australian Markets
Virgin Australia has confirmed long-awaited plans to launch a near-$700 million initial public offering and re-list on the Australian Securities Exchange.
Following days of market hypothesis, Australia’s second-biggest airline issued a prospectus on Friday, with the offer period working between June 16 and June 19. Shares are anticipated to begin trading on June 24 below the ticker VGN.
The absolutely underwritten IPO of 236.2 million shares is priced at $2.90 apiece and is predicted to raise $685m, valuing the airline at simply over $2.3 billion.
Under the float, Virgin’s US non-public equity proprietor Bain Capital’s shareholding will drop from about 70 per cent to 40 per cent, whereas minority shareholder Qatar Airways will retain its 25 per cent stake.
The return to the boards comes after the nation’s competitors regulator in March cleared Virgin and Qatar’s five-year partnership permitting the Australian airline to use Qatar plane and crew to operate new providers below a so-called “wet lease” association.
From subsequent week, Virgin will return to long-haul flights between Doha and Perth, Brisbane and Sydney. Flights to and from Melbourne will begin in December.
Bain purchased Virgin in 2020 after the airline crashed into administration with billions of {dollars} price of debt following the onset of the COVID-19 pandemic. Over the previous few years, it has made a number of makes an attempt to get Virgin back on to the ASX.
Virgin chief government Dave Emerson on Friday mentioned the airline was a easy, targeted business with a reworked operational and industrial model.
“We have a clear strategy and an incredible team of people who deliver wonderful flying experiences to our customers every day,” he mentioned.
“We are delivering on our ambition to be Australia’s most loved airline and continuing to expand our award-winning Velocity frequent flyer program.”
Virgin chair Peter Warne mentioned it was an applicable time for the business to transition to a publicly listed company.
“This provides an opportunity for new investors to share in the success of Virgin Australia as the airline enters its next phase,” he mentioned.
“I commend all those involved in orchestrating Virgin Australia’s remarkable turnaround and setting the business up for long-term success.”
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