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.

Five years after collapsing into administration, the country’s second-largest airline will finally return to the ASX on Tuesday. There is a lot at stake.