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.

Australia’s second largest domestic airline group listed as VGN at $2.90 per share, with the price quickly rising to $3.13 per share within the first 30 minutes. This represented a market capitalisation of around $2.

Virgin Australia shares jumped 8.3% on Tuesday following its A$685 million ($439 million) initial public offering, signaling renewed investor confidence in Australias IPO market. The airline priced 236.