Virgin Australia's IPO is generating significant buzz. The company plans to raise $685 million, pricing shares at $2.90 each, which is about a 30% discount compared to Qantas. With a projected net profit of $331 million for FY2025, Virgin is valued at seven times its earnings, aligning with U.S. airline metrics. The IPO is set to be the largest in Australia this year, and trading is expected to commence on June 24. 

From a day trading perspective, the IPO's timing is intriguing. The ASX 200 has been approaching record highs, and Virgin's return could attract substantial attention. However, it's essential to consider potential risks, such as thin profit margins and the cyclical nature of the airline industry. If consumer demand weakens, it could impact the stock's performance. 

I agree with the cautious approach. While the IPO offers a chance to invest in a major player in the Australian airline market, day traders should be prepared for volatility. Monitoring early trading volumes and market sentiment post-listing will be crucial. Setting stop-loss orders and having a clear exit strategy can help manage potential risks