Home Business NewsFinance News Virgin Money IPO values bank at £1.25bn

Virgin Money IPO values bank at £1.25bn

by LLB Editor
13th Nov 14 9:11 am

Sir Richard Branson’s Virgin Money is set to be valued at £1.25bn as the UK bank debuts on the London Stock Exchange today.

Shares will be priced at 283p each and the bank is expected to raise £150m from the IPO.

Official trading begins on 18 November.

The IPO will help Virgin money repay the £50m it owes to the government for its acquisition of Northern Rock in 2011.

After the listing, Branson will hold a 34% stake in the business and U.S. billionaire Wilbur Ross will hold 33%.

In a statement, chief executive Jayne-Anne Gadhia said: “I am delighted to welcome all our new shareholders to Virgin Money.

“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.

“The completion of our IPO will see us make a final payment to the Government of £50m as consideration for our acquisition of Northern Rock plc, taking the total paid to over £1bn.

“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.

“I would also like to thank all of my colleagues at Virgin Money for their hard work in bringing us to this point… As we previously announced, each employee will be awarded £1,000 worth of shares in the business upon flotation, meaning that all colleagues have a stake in our future success.”

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