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Virgin Australia has appointed a new chairman as it confirms it will relist on the ASX on 24 June.
Peter Warne, a former chair of Macquarie Group Limited, will take over as non-executive chairman from Ryan Cotton, who has headed the Virgin board since November 2020. The company has lodged a prospectus, viewable online, ahead of the planned initial public offering (IPO).
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“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,” said Warne, who joined the board in April.
“This provides an opportunity for new investors to share in the success of Virgin Australia as the airline enters its next phase.
“I commend all those involved in orchestrating Virgin Australia’s remarkable turnaround and setting the business up for long-term success.”
CEO Dave Emerson, who succeeded Jayne Hrdlicka earlier this year, has also joined the board as managing director.
“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,” Emerson said.
“We are delivering on our ambition to be Australia’s most loved airline and continuing to expand our award-winning Velocity frequent flyer program.”
Bain Capital is looking to raise $685 million in Virgin’s IPO, which will reduce its holding in the airline to 40 per cent. Brokers are selling 30 per cent of stock to new investors, with Qatar Airways to retain 23 per cent and management 7.8 per cent.
“The IPO is comprised of an offer of 236.2 million fully paid ordinary shares at an offer price of A$2.90 per share, raising A$685 million to allow certain existing equity holders the opportunity to realise part of their investment in the company,” Virgin said in a press statement.
According to The Australian Financial Review’s “Street Talk” column, Virgin will relist with a $2.3 billion market capitalisation and $3.6 billion enterprise valuation at a 30 per cent discount to rival Qantas’ valuation.
Virgin employees will also receive $3,000 in share rights as part of the listing, dubbed a “Take-Off Grant” for staff.
