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· 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.

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