SYDNEY (Reuters) -Virgin Australia shares opened 8.3% higher on Tuesday after it raised A$685 million ($439 million) in an initial public offering, a transaction dealmakers hope will revive a flat-lining listings market.

The airline sold 236.2 million shares at A$2.90 each, valuing it at A$2.32 billion on a fully diluted basis.

The stock began trading at A$3.14, outpacing a 1.2% gain in the Australian benchmark S&P/ASX200.

Virgin's debut came as the airline on Monday diverted two Qatar-bound flights to India and Oman, according to flight tracking website FlightRadar24. Qatar temporarily closed its airspace ahead of Iran launching missiles at a U.S. base in the state. Virgin did not immediately respond to a request for comment from Reuters.

Virgin, which is Australia's second-largest airline by market share after Qantas Airways ( QUBSF ) was delisted in 2020 after private equity giant Bain Capital rescued it from administration.

Bain, which bought Virgin for A$3.5 billion including liabilities, will see its stake reduced to 39.4% from about 70%, while Qatar Airways, which recently bought into the airline, will retain 23%, the IPO prospectus showed.