By Scott Murdoch
(Reuters) -Bain Capital-owned Virgin Australia is looking to raise A$685 million ($442.78 million) in an initial public offering, according to a term sheet seen by Reuters on Wednesday.
The company has set the offer price at A$2.90 per share and the offer size reflects 30% of Virgin’s total issued capital.
Bain Capital did not immediately respond to a Reuters request for comment.
The airline, Australia’s second largest behind Qantas, will sell 236.2 million shares in the IPO to value the company at A$2.32 billion on a fully diluted basis, the term sheet showed.
Virgin will have an enterprise value of A$3.6 billion, taking into account its net debt of A$1.31 billion.
Bain’s shareholding will reduce from about 70% to 39.4% following the IPO while Qatar Airways will retain a 23% stake, according to the term sheet.
($1 = 1.5470 Australian dollars)
(Reporting by Scott Murdoch in Sydney, additional reporting Rishav Chatterjee in Bengaluru; Editing by David Gregorio)
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