Virgin Australia shares surged 11.4% in its trading debut on Tuesday, lifting its market capitalisation to A$2.58 billion ($1.7 billion), with dealmakers hopeful it will revive Australia's subdued listings market.

Bain Capital’s Virgin Australia will begin trading in Sydney on Tuesday after raising A$685 million ($445 million) in one of the country’s biggest initial public offerings this year.

Virgin Australia lists on the ASX (VGN) after a successful $685m IPO, marking a new chapter in its growth and ambitions to be Australia’s most loved airline.