Virgin Australia surged as much as 9.7% to A$3.18 on Tuesday following its A$685 million ($444 million) initial public offering — one of Australia’s largest this year and the biggest airline IPO in Asia-Pacific in a decade.
The relisting marks a major comeback for the airline, which collapsed in the early days of the COVID-19 pandemic. Private equity giant Bain Capital, which rescued the airline in 2020, sold a 30% stake in the offering but remains the largest shareholder with a 40% stake. Qatar Airways also retains a significant holding, while Virgin Group has exited ownership but maintains a brand licensing deal.
Investor sentiment for IPOs is improving as Australia’s benchmark index edges toward a bull market. However, analysts warn that geopolitical tensions — particularly in Iran — could reverse gains if oil prices surge, hitting fuel-dependent sectors like aviation.
On Tuesday, airline stocks across Asia Pacific rebounded as oil prices eased, calming near-term fears.
Virgin’s return to the ASX has been years in the making after its prior public listing failed to gain traction and struggled to attract long-term investor support.