Would MM take part in a Virgin IPO?
I know that it's only speculation at this point, but would MM be tempted to take part in a float of Virgin if it happens? Cheers, Carl
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Answer
Hi Carl,
Its important to note that this will be a Private Equity IPO and they generally have a history of underperformance. It is also a fair assumption that Bain (PE Firm) which is currently under administration will unload some shares sooner or later given its 95% stake in the airliner.
On the other hand the business as a whole is slowly recovering from COVID and has an efficient line of airplanes, however this is not suffice and we like other opportunities in the market with much more depth and key macro themes to support it.
However all this aside it will come down to price, my “best guess” is it will be priced fairly richly following the strong advance by Qantas (QAN) post Covid.
