13th November 2014
Challenger bank Virgin Money has revealed that its stock will be priced at 283p per share when it goes live on the London Stock Exchange.
Based on the offer price, Virgin Money’s market capitalisation will be approximately £1.25bn at the commencement of conditional dealings.
In an announcement today the bank, which is part owned by entrepreneur Sir Richard Branson, said it expects to raise approximately £150m of gross proceeds from the sale.
The commencement of dealing is expected to take place next week, on 18 November and each employee will be awarded £1,000 worth of shares in the business upon flotation.
The bank announced its plans to float back in October but private investors are excluded from the upcoming sale.
The completion of the IPO will see the group make its final payment to the government of £50m for its acquisition of Northern Rock plc, which it bought in 2011, taking the total paid to over £1bn.
Jayne-Anne Gadhia, chief executive officer of Virgin Money, said: “Our capability to deliver growth at meaningful scale, the quality of our balance sheet and the fact that we are unburdened by legacy issues makes us stand apart from other banks, and these strengths give us the potential to deliver on-going returns to our shareholders through both capital growth and progressive dividend payments.
“As we begin life as a public company, we are committed to maintaining the straightforward, transparent approach to business that we believe helps differentiate us. We are passionate about improving competition in UK retail banking and believe that today’s IPO is another step forward for us as we seek to deliver on that objective.”