Shares of Insignia Financial experienced a significant surge of over 10% towards the end of trading on Thursday, following reports that Bain Capital is in advanced discussions for a buyout of the Australian wealth management firm. The stock, which had been trading around A$3.10, jumped to A$3.40 in the last ten minutes of the trading session, marking its highest closing price since February of the previous year.

Bain Capital, known for its acquisition of Virgin Australia during the pandemic in 2020, is reportedly collaborating with Bank of America to explore a takeover of Insignia, valued at approximately A$2.27 billion (or $1.46 billion). This information was disclosed by the Australian Financial Review, citing anonymous sources.

As of the end of September, Insignia managed A$319.6 billion in funds. The Australian Stock Exchange (ASX) operates with regular trading hours that conclude at 4 p.m. Sydney time, followed by a brief pre-closing auction period where brokers can adjust their orders before the market officially closes.

This news has generated considerable interest in Insignia's stock, reflecting investor optimism regarding the potential buyout.