Virgin Money plans to float on London Stock Exchange
Richard Branson’s retail bank Virgin Money, the phoenix risen from the ashes of Northern Rock, has confirmed its plans to raise £150m with a flotation on the London Stock Exchange.
US investor Wilbur Ross and Branson’s Virgin Group own 90% of the company but will sell shares, along with other shareholders, in an offer expected to generate a free float of at least 25% and give the Newcastle-based bank an expected valuation of at least £2bn.
Virgin appointed the Bank of America Merrill Lynch and Goldman Sachs as joint sponsors, global coordinators and joint bookrunners to the offer. Barclays and Citi will also act as bookrunners and Keefe, Bruyette & Woods will offer its services as joint lead manager.
The chief executive officer (CEO) of Virgin Money, Jayne-Anne Gadhia said: “Our decision to take the business public marks just how far the company has come.”
The bank also stated it would pay the HM Treasury £50m as part of an agreement undertook when Virgin Money acquired Northern Rock in late 2011.
The company added that each member of its 2,800 staff will be allocated £1,000 worth of shares when the company lists.
Virgin Money is the fourth bank to opt for flotation this year, after TSB and OneSavings Bank both arrived in June.
Another 'challenger' bank, Aldermore, is planning its IPO in October, with Santander UK, the largest of the bunch, also plotting its own London flotation for some time in the near future.