By Scott Murdoch and Christine Chen SYDNEY (Reuters) -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.

Virgin Australia lists on the ASX (VGN) after a successful $685m IPO, marking a new chapter in its growth and ambitions to be Australia’s most loved airline.

Shares of Virgin Australia Holdings, a subsidiary of Virgin Australia Holdings Limited (OTCPK:VBHLF), rallied 11% after returning to the ASX with its initial public offering ((IPO)).