Advisers
Learn
Newsletter
Offers
Podcast
About
  Back
~
2
min read
· Posted on
February 21, 2024

Virgin Australia is spreading its wings again and the bankers are putting their best foot forward

Seven investment banks have pitched to Virgin to take it public and help it raise capital.

What's the key learning?

  • Virgin Australia exited voluntary administration, returned to its full year profit in a decade, and has hinted at a return to the ASX later this year.
  • Seven investment banks have pitched to Virgin to take it public and help it raise capital, and this could become a major payday for investment banks in a very soft public market.
  • Investment banks play a crucial role in preparing a company for an initial public offering (IPO).

👉 Background: Think back to April 2020. The world was on edge with this new virus, the WAP dance was going viral on TikTok and Virgin Australia was entering voluntary administration.

👉 What happened: Since then, Virgin exited voluntary administration, returned to its first full year profit in a decade and has hinted at a return to the ASX later this year. This could even be a bigger comeback than Pamela Anderson.

👉 What else: Over the last week, seven investment banks have pitched to Virgin to take it public and help it raise capital. And this could become a major payday for investment banks, in a very soft public market.

What's the key learning?

💡 Think of investment bankers a bit like matchmakers.. except replace bride and groom with investor and company.

💡Investment banks play a crucial role in preparing a company for an initial public offering (IPO). They will:

  • Analyse a company's financials and the current market conditions to determine if it's suitable for an IPO
  • Develop and execute the IPO strategy
  • Set a reasonable price for the shares
  • Underwrite the IPO (often, but not always).

💡  And in Virgin’s case, where they are raising upwards of $1 billion, this could become a very juicy fee for the investment bankers.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

Sign Up
A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
© 2024 Flux Technologies Pty Ltd and Flux Media Pty Ltd
All rights reserved.
Explore
HomeLearnPodcastAboutNewsletterFlux at WorkAdvisers
Offers
Home LoansSavings AccountsBank AccountsShare TradingCar LoansCredit Cards
Support
CareersContact usPrivacy PolicyTerms of Use
Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 1283166) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
No items found.