Bain Capital is considering an initial public offering of Australia’s second-largest airline in what would be a new test of investor appetite for carriers in a turbulent post-pandemic recovery.
On Monday, Bain Capital said as a first step, it will soon ask advisers about the best timing, structure and metrics for relisting Virgin Australia on the Australian Securities Exchange.
The private-equity firm acquired Virgin Australia in 2020 after the airline collapsed into insolvency after the Covid-19 pandemic grounded flights worldwide.
Australia closed its borders to noncitizens for nearly two years, while its states and territories adopted different strategies when policing their internal borders, in some cases setting new rules for passengers midflight.
Before its acquisition by Boston-based Bain Capital for $2.45 billion, Virgin Australia was listed on Australia’s main stock exchange for 16 years.
“In the coming months we will consider how best to position Virgin Australia for continued growth and long-term prosperity.” Bain Capital intends to retain a significant shareholding in the airline should it pursue an IPO, he said.
“Bain Capital has made a long-term commitment to support Virgin Australia’s growth and sustainability,” said Mr. Murphy.
Virgin Australia sought bankruptcy protection in April 2020 as the pandemic upended global travel.
Australia reopened its border to tourists in February 2022.
Bain Capital’s Mr. Murphy said Virgin Australia, led by Chief Executive Jayne Hrdlicka, had achieved an impressive transformation.
“Bain Capital will ensure these preliminary deliberations are not a distraction for Virgin Australia management, who can remain 100% focused on their roles,” Mr. Murphy said.
Source: https://www.wsj.com/articles/bain-capital-considers-virgin-australia-ipo-as-travel-demand-rebounds-11673852759