Virgin Money revives float plans but other sellers remain cautious

Tim Wallace
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CHALLENGER bank Virgin Money relaunched its bid to float on the stock market yesterday, making the most of the recovery in markets.

The lender had put its initial public offering (IPO) on hold last month after stock markets dived and rocked confidence.

And new capital rules for banks are not as tough as markets feared, giving the sector another boost.

Now it expects to float by the end of the month.

“Access to the public capital markets has been a long-term strategic objective for Virgin Money and we are now ready to take this important step forward for our business,” said chief executive Jayne-Anne Gadhia.

But its return is unlikely to kick off a new flood of IPOs.

It is understood that rival challenger bank Aldermore has no plans to resurrect its plans to go public just yet.

The lender pulled its float in the middle of last month, citing poor market conditions. It still plans to wait for a better moment.

Aldermore had worked hard to sell the stock, flying to pitch to US institutions, but did not win enough support.

Meanwhile, British Car Auctions is also thought to have no plans to return to the stock markets for the time being.

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