Virgin Money flotation: Branson aims to raise £150m
Richard Branson's Virgin Money will become the fourth bank this year to float on the London Stock Exchange
Virgin Money, the banking arm of Richard Branson's Virgin empire, has revealed plans for a stock market listing, which could see the financial services brand valued at £2bn.
The plan to float shares on the London Stock Exchange is expected to raise about £150m which will be used to recruit new staff and support the company's growth plans.
If successful, Virgin Money will become the fourth bank to float this year, following the listings of both OneSavings and Aldermore, and the demerger of TSB from Lloyds Banking Group.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
After the company is listed it will pay £50m of the proceeds to HM Treasury as part of its acquisition of the "non-toxic" elements of ailing Northern Rock in 2011. The deal was contingent on Virgin Money floating before the end of 2016.
Jayne-Anne Gadhia, chief executive of Virgin Money told the BBC's business editor, Kamal Ahmed, that in her view taxpayers have already gained all their money back from the company's bailout of Northern Rock.
According to Sky News, Virgin Money will appointment Barclays, KBW and Citi to act as bookrunners on the initial public offering (IPO). The three banks will work alongside Bank of America Merrill Lynch and Goldman Sachs on the process.
Gadhia said in "recognition of their hard work to date and their contribution to the future value of the business, I am also delighted to announce that each employee will be awarded £1,000 worth of shares in the business upon flotation".
Virgin Money had been expected to launch its IPO next year, but according to Sky News, Scotland's rejection of independence in the referendum last month and the company's strong recent trading persuaded the bank's board to move ahead with the plans earlier than anticipated. Virgin Money's pre-tax profits had a fourfold increase to £59.7m in the first half of this year on 28 per cent-increased revenues of £210m, the Daily Telegraph reports.
Branson said of the plans: "This is a huge day for Virgin Money. We started this company 20 years ago with Jayne-Anne Gadhia when we set out to challenge the financial services industry. Our wonderful team have come a long way since then and have built a strong and valuable business offering great value products and services and a real challenge to the established players."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'Epic meltdown'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
The World of Tim Burton: a 'creepy, witty and visually ravishing' exhibition
The Week Recommends Sprawling show at the Design Museum features over 600 exhibits from across the directors' five-decade career from early sketches to costumes and props
By Irenie Forshaw, The Week UK Published
-
Crossword: October 31, 2024
The Week's daily crossword
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published