Virgin Money will become the fourth UK bank to float its shares on the stock exchange this year, with the lender today confirming plans to launch an IPO.
The lender is seeking to raise around £150m through the offering, which will see at least 25 per cent of its shares float on the market. No date has been confirmed for the launch.
Following a successful launch, Virgin Money will make a final payment of £50m to the Treasury as agreed in 2011, when Virgin Money acquired Northern Rock plc. The payment will take the total consideration paid by Virgin Money to the Treasury to £1.02bn.
Bank of America Merrill Lynch and Goldman Sachs have been appointed as joint sponsors for the share launch, while Barclays and Citi will act as joint underwriters.
Virgin Money chief executive Jayne-Anne Gadhia says: “We are delighted to be announcing our intention to float Virgin Money. Over the last three years we have transformed our business. We have expanded our product range, increased our customer numbers, grown our balance sheet and enhanced our profitability.
“We look forward to being a listed company and remain committed to delivering positive outcomes for all of our stakeholders.”