Challenger bank Virgin Money has lowered expectations for its post-IPO valuation, City A.M. 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, but on Tuesday it 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 City A.M. 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 Monday, Jayne-Anne Gadhia, Virgin Money's chief executive, said the bank would IPO by the end of November.
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.
Virgin Money did not comment.