Virgin Australia Delays IPO Plans Until Next Year, Bain Capital Considers 2024 Listing
Bain Capital Postpones Virgin Australia IPO
Bain Capital has decided to delay its plans for an initial public offering (IPO) of Virgin Australia airline until next year, according to a person familiar with the matter. The U.S.-based private equity firm, which purchased Virgin Australia for A$3.5 billion ($2.45 billion) in 2020, will assess market conditions before considering a potential listing in 2024. This decision comes after Bain Capital’s announcement in January that it would explore re-listing Virgin Australia, which had previously undergone voluntary administration.
Fluctuating Timeline for IPO
The timeline for the IPO has experienced fluctuations, with previous reports suggesting a mid-year target, then a move to November. The exact timing of the listing will depend on market conditions and other factors. Bain Capital declined to comment on the matter, and all queries regarding the IPO should be directed to Virgin Australia.
Positive Financial Performance for Virgin Australia
Bain Capital revealed that Virgin Australia achieved a profit for the first time in 11 years for fiscal year 2023. The airline reported a statutory net profit after tax of A$129 million ($82.93 million) for the year ended June 30, 2023, compared to a loss of A$565.5 million in 2022. This positive outcome can be attributed to the strong recovery in travel demand following the COVID-19 pandemic.
Market Conditions and Listing Plans
With only 16 listings on Australia’s stock market this year, the lowest number since 2009, raising approximately US$500 million, market conditions have influenced Bain Capital’s decision to postpone the IPO. The private equity firm aims to ensure optimal conditions for a successful listing and is closely monitoring the market. If the IPO proceeds in 2024, it has the potential to become the largest new share sale in nearly two years.
Conclusion
Bain Capital’s decision to delay the IPO of Virgin Australia until next year provides an opportunity to assess market conditions and ensure a favorable outcome for the listing. The airline’s positive financial performance for fiscal year 2023 reflects the rebound in travel demand following the challenges posed by the COVID-19 pandemic. As the plans for the IPO evolve, Bain Capital remains committed to exploring the best opportunities for Virgin Australia’s future.
