Friday, February 22, 2019

Virgin Money floats onto the London Stock Exchange


The UK bank which is part owned by Sir Richard Branson hopes to raise around £150 million from its stock market flotation.

Shares have been priced at 283p each. This was at the lower end of the price range and values the company as £1.25 billion.

Virgin Money will raise between £310 million and £344 million in gross proceeds, which in return they will receive around £150 million for floating just 25% of the company.

Chief executive Jayne-Anne Gadhia 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.”

She went on further to say, “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.”

The company has announced that on completion of the IPO, they will ensure they pay back the government the £50 million they owe for its 2011 purchase of part of the Northern Rock.

Employees at Virgin Money will each receive £1,000 of shares.