Virgin Money cuts price on flotation shares
CHALLENGER bank Virgin Money has lowered expectations for its post-float valuation, CityAM understands.
Having originally touted a post-IPO market cap of between £1.5bn-£2bn, it has reduced its expectations to £1.25bn-£1.45bn following its IPO later this month.
Virgin Money shelved its flotation plans in October, citing market turbulence, following new lender Aldermore’s decision to pull its IPO.
But on Tuesday Virgin Money said more stable conditions, coupled with clearer leverage rules from the Bank of England’s Financial Policy Committee, had encouraged it to press on.
A source close to the deal told CityAM the company will target a share price of 283p-333p when it floats on the London Stock Exchange.
The aim is to raise £150m through the IPO, with a secondary fundraising expected to take place later on. The bank has previously said it plans to float a 25 per cent stake.
On Tuesday, Jayne-Anne Gadhia, Virgin Money’s chief executive, said the bank would float by the end of November.
Virgin Money did not comment.