Bain Capital explores Virgin Australia IPO as aviation market improves

Bain Capital said on Monday it is looking to relist airline Virgin Australia, in a move that would come as the domestic aviation market bounces back strongly from pandemic lows. A listing of Australia's second-biggest carrier would likely be one of the country's largest initial public offerings (IPOs) in 2023 after capital markets activity plunged last year amid global financial market uncertainty. "In the coming months we will consider how to best position Virgin Australia for continued growth and long term prosperity," Mike Murphy, a Sydney-based partner at the U.S. private equity firm, said in a statement. "It is Bain Capital's current intention to retain a significant shareholding in a future IPO of Virgin Australia." Bain said it would seek advice on the best timing and structure to return the airline to the Australian Securities Exchange but added that no decisions had been made as to if and when that would happen. It sent a request for proposals on the listing to investment banks on Monday and expects to make appointments within a month, said two people with direct knowledge of the matter, declining to be identified as they were not authorised to speak with media. Boutique firm Reunion Capital has been appointed as a financial advisor on the deal, the people said, and will oversee the appointment of investment banks to lead the IPO.<br/>