Bain Capital, LP is targeting 2023 for an initial public offering of Virgin Australia Holdings Limited, sources said. The hope of the private equity firm is that this time frame would enable volatility from Omicron to have played out, they said. By 2023, the anticipation is that prospective investors in any float would have a clearer perspective on the earning horizon for the group, with more normal passenger demand returning and it being in a better position to forecast earnings.

Suggestions are that the Boston-based buyout fund will stage a partial exit from the business to get some money back, and probably retain 50% - 60% of the business. It is understood Bain has not appointed any investment banks for a transaction, although discussions had taken place in recent months with advisers about its future prospects. Investment bank Goldman Sachs is expected to be on the ticket should any listing occur, given that the US investment bank has advised Bain in the past.

Sources said the private equity firm is expected to start assessing the possibility of an exit through a float around July 2022, but this would probably be for a listing in 2023.