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.

Virgin Australia's shares have rallied by about 8 per cent as it has listed on the stock exchange five years after its collapse. The airline's initial public offering was priced at $2.90 per share, raising $439 million for the company.

Sharemarket up 1 per cent in broad rally; CBA cracks record; energy stocks drop with oil price; Collins Foods soars 20pc; Rio Tinto and Hancock Prospecting invest $2.4b in new iron ore mine. Follow live.