Virgin Australia IPO Discussion

[cove]

It was interesting that this IPO got rushed.Waiting for Godot Is what I believe we will get from our bid for 100,000 @ $2.90.Lucky it’s only money.
Mrscove kept our original Qantas float shares.

 

[RooFlyer]

@cove how much of the broker firm allocations do you think will leak out when trading opens?

They would’ve allocated them to their clients on the basis that the clients were 'sticky', but you never know

 

[cove]

Bain will want some trades to occur so that the fresh sellers can celebrate their profits. I just want to get some at what is expected to be the “ground floor pricing” as this first IPO is cheap.
Ords and Wilson’s are not brokers that we have used.
Our bid is thru Crestone to Barrenjoey and so far I have been told that they were heavily over subscribed.

 

[RooFlyer]

For such a widely anticipated event with so much discussion beforehand, there seems remarkably little discussion about it here now. or is there another thread that I have missed? I'm on the road.

i’ve just been catching up with a few online articles and this one from the AFR seems to have a good overview of the good and bad of the float and the stocks prospects.

Inside Bain’s Virgin pitch, and the one number investors will fear

A tightly held pathfinder prospectus reveals all the key financial metrics that the airline’s potential new shareholders can look forward to.

www.afr.com

A few snippets:







Sowhat do people think of the airline as revealed in its pathfinder Prospectus?

 

[Saab34]

I think they are on a solid position moving forward financially as long as they don’t do anything stupid. I’m still somewhat skeptical about this business as they have often got distracted in the past and costs have blown out, debt simply got out of hand. Financial discipline has been more top of mind in recent years so I hope they can stick to that.

The E2 is an expensive bit of tech, I hope they can make it work, we have seen this equipment before and it didn’t work.

More capital will be needed on the IT front. Still questionable standards. Converting the whole fleet to MAX over time also appears to be costly. Let’s see how that plays out. Need to see a few years of balance sheets to get an idea if it’s going to go south again.

Balance sheet discipline was never a Virgin strength.

 

[cove]

Well Qantas are running very old planes so their allure and gloss on domestic flights has reduced a lot.Qantas is selling more business class tickets but that may reduce if they don’t lift their game with product improvements.
The Virgin float is done and dusted and there should be a profit for any stags.