Virgin Australia Holdings Ltd (ASX: VGN) shares are officially back on the ASX boards after completing its long-awaited initial public offering (IPO).
The airline operator's shares are currently changing hands for $3.18, which represents a 9.5% increase on its listing price.
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Virgin Australia shares take centre stage
Under the ownership of Bain Capital, Virgin Australia has been through a significant transformation. Now positioned as a value-focused carrier, the airline notes that it services around 20 million passengers a year, operating a fleet of over 100 aircraft across 76 routes to 38 destinations.
Virgin Australia's reach extends well beyond domestic skies. With partnerships covering over 650 global destinations, and the imminent launch of long-haul services to Doha via a wet lease agreement with Qatar Airways, its international ambitions are gaining altitude.
Adding to this strength is the company's award-winning Velocity Frequent Flyer program. It now boasts approximately 13 million members and around 80 commercial partners — making it one of the largest loyalty programs in the country.
As a comparison, arch-rival Qantas Airways Ltd (ASX: QAN) reported 17 million Qantas Frequent Flyer members with its half year results.
The Virgin Australia IPO
The company's IPO raised $685 million via the sale of 236.2 million shares at $2.90 per new share.
The offer was designed to provide liquidity for existing investors rather than raise new capital for the business.
After the IPO, new investors hold around 30.2% of the company. Bain Capital remains the largest shareholder, while strategic investors Qatar Airways, Virgin Group, and the Queensland Investment Corporation also retain sizeable holdings.
Management commentary.
Commenting on its return to the ASX boards, Virgin Australia chair, Peter Warne, said:
After making significant progress in Virgin Australia's transformation and with the backing of leading global airline Qatar Airways Group as a strategic investor, we believe it is now appropriate for the business to transition to a publicly listed company.
This sentiment was echoed by its CEO, Dave Emerson. He said:
Virgin Australia is a simple, focused business with a transformed operational and commercial model. We have a clear strategy and an incredible team of people who deliver wonderful flying experiences to our customers every day. We are delivering on our ambition to be Australia's most loved airline and continuing to expand our award-winning Velocity frequent flyer program.
The company's return to the ASX caps off a remarkable turnaround story — from administration in 2020 to a leaner, more focused airline primed for growth. Here's hoping this IPO marks the start of a rewarding new journey for shareholders.
