Virgin Australia is poised to re-enter the stock market after the carrier on Wednesday (4 June) launched an initial public offering of A$685 million (US$443 million).

The offering will see US private equity group Bain Capital, which acquired the Australian carrier in 2020 after it went into voluntary administration, drop its stake from about 70 per cent to 39.4 per cent, while Qatar Airways, which recently bought a minority stake in the airline, will retain a 23 per cent holding, according to a Reuters report.

Bain Capital will sell 30 per cent of Virgin Australia at A$2.90 a share, according to reports, which will give the airline a market value of about A$2.3 billion. Virgin Australia shares are due to start trading on the Australian Securities Exchange (ASX) on 24 June.

Virgin Australia had scaled back its international network in the wake of the pandemic but is due to resume long-haul flights through its partnership with Qatar Airways.

The two carriers plan to introduce 28 new weekly flights between Doha and major Australian cities in June, after receiving approval for their alliance from the Australian Competition and Consumer Commission in March.