---
title: "Virgin Australia’s $685m IPO Cleared for Take-Off Ahead of June 24 ASX Listing"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-06-15T11:23:40+00:00"
modified: "2025-06-15T11:23:40+00:00"
date: 2025-06-15
canonical: "https://www.share-talk.com/virgin-australias-685m-ipo-cleared-for-take-off-ahead-of-june-24-asx-listing/"
category: "Automobiles, Parts & Engineering"
categories: ["Automobiles, Parts & Engineering", "Business & Support Services", "IPO", "Technology", "Technology, Media & Telecoms"]
tags: ["ASX", "Australian Securities Exchange", "bookbuild", "Guzman y Gomez", "initial public offering", "Qantas", "Retail investors", "Virgin", "Virgin Australia"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/06/426610d3-71ca-46b2-91ae-bef1125e66f1.webp?fit=1200%2C800&ssl=1"
format: "news"
language: "en-GB"
---

# Virgin Australia’s $685m IPO Cleared for Take-Off Ahead of June 24 ASX Listing

**Published:** June 15, 2025
**Author:** sharetalk
**Categories:** Automobiles, Parts & Engineering, Business & Support Services, IPO, Technology, Technology, Media & Telecoms
**Tags:** ASX, Australian Securities Exchange, bookbuild, Guzman y Gomez, initial public offering, Qantas, Retail investors, Virgin, Virgin Australia
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/06/426610d3-71ca-46b2-91ae-bef1125e66f1.webp?fit=1200%2C800&ssl=1)

---

Virgin Australia, the country’s second-largest airline, is set to make its return to public markets with a **$685 million initial public offering**, aiming for a **June 24 listing on the Australian Securities Exchange (ASX)**. The IPO will value the business at **$2.3 billion**, and the fast-paced timetable reflects a strategy rooted in market timing.

#### **Why the Rush?**

Institutional backing is already locked in, and the **bookbuild closed by Thursday, June 5**. Advisers **Barrenjoey, Goldman Sachs**, and **UBS** are moving quickly to avoid any potential downturn in **Qantas’ share price**, which could weaken Virgin’s value proposition.

**Qantas shares have surged 73% over the past year**, fuelled in part by the collapse of regional rival **Rex**. If Qantas’ valuation were to fall, Virgin’s offer—priced at **$2.90 per share**—would no longer appear to carry the **30% discount** currently being marketed as attractive relative to its larger peer.

At current pricing, Virgin’s IPO reflects a **valuation of seven times its forecast net profit of $331 million**, putting it on par with US airline peers, but below **Qantas’ 10x earnings multiple**.

#### **Retail and Strategic Participation**

**Wilsons** has also joined the advisory team, seeking to raise **$100–125 million** from retail investors. The public component of the offering opens **June 6**, following the lodging of the prospectus. Broker bids will be accepted between **June 16 and 19**.

Virgin’s private equity owner, **Bain Capital**, which acquired the airline for **$700 million in 2020** after it collapsed under **$5.15 billion in debt**, will reduce its holding to **40%**. As part of the float:

-
**30%** of the business will be sold to the public,

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**Qatar Airways** will retain its **23% stake**, acquired for $750 million last year,

-
**Virgin staff and management** will hold **7.8%**.

Bain’s remaining stake is **locked up until FY26 results**, after which it may begin phased sell-downs.

#### **Valuation and Financial Metrics**

Including **$1.3 billion in net debt**, Virgin will carry an enterprise value of around **$3.6 billion**. This equates to **3.4x forecast EBITDA** of **$1.06 billion** for the current financial year.

The IPO structure mirrors the successful **Guzman y Gomez listing** of 2023, which also featured locked-in cornerstone investors and a lean, retail-friendly float.

#### **Cautionary Notes**

While the deal appears well-structured, history offers a cautionary tale. The **Adore Beauty IPO**, launched at a $635 million valuation during the pandemic, has since shrunk to just **$66 million**, illustrating the risks of buying at perceived peaks.

Some analysts warn that **the days of IPOs offering steep 20–30% discounts to listed peers may be fading**, particularly as **private capital has become more selective** and weighed down by leveraged portfolios. Yet with fewer competing listings and reduced private equity buying power, **public equity investors may once again have the upper hand**—for now.

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**Original URL:** https://www.share-talk.com/virgin-australias-685m-ipo-cleared-for-take-off-ahead-of-june-24-asx-listing/
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