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 airline’s relisting comes against the backdrop of an Australian aviation industry reshaped by the hit of the pandemic and the large swings in demand that followed the reopening of international borders.

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.