Virgin Australia Shares Soar on ASX Despite Middle East Concerns
Virgin Australia's shares surged over 11% on their first day back on the Australian sharemarket, as investors showed strong interest in the nation's second-largest airline. The company's relisting on the ASX after more than four years was met with optimism, with investors banking on improved profitability under new management despite uncertainties from the Middle East conflict.
Virgin Australia shares soared more than 11% on their return to the Australian sharemarket, following more than four years of absence. The shares closed at $3.23 on the first day of trading, as investors showed interest in the nation's second-biggest airline despite uncertainties from the Middle East conflict.
The relisting on the ASX was met with optimism as investors believed that new management and streamlined operations would enhance profitability, even in the face of fluctuating oil prices. Virgin raised $685 million through an initial public offering, selling about 30.2% of the company to fund managers and retail investors. The IPO price was $2.90 per share, and the company now holds a market value exceeding $2.5 billion, trading under the ticker VGN.
Virgin CEO Dave Emerson noted that investor demand exceeded the available shares in the IPO, leading to the surge in share price post-listing.
According to the source: The Sydney Morning Herald.
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