By Scott Murdoch and Christine Chen SYDNEY (Reuters) -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.

The ASX 200 climbed around +1% higher in intra-day trade. Virgin Australia (ASX:VGN) is back on the boards and traded up to 10% higher than its IPO price of $2.90 per share. Financials, Materials, and IT were the strongest performing sectors – all up more than 1.

Virgin Australia shares are trading higher as the nation's second-biggest airline returns to the ASX five years after it went bust.