THE LONG-AWAITED flotation of Virgin Money will take place tomorrow, although the bank is planning to price its shares right at the bottom of their range, City A.M. understands.
Earlier this month we revealed the challenger bank will target a share price of 283p-333p when it launches its IPO, valuing it at £1.25bn-£1.45bn. A source close to the deal said yesterday that Virgin Money had opted to price its shares at 283p, which will put its value at £1.25bn. It is likely to exercise its greenshoe option when it lists, which enables existing shareholders to sell more shares.
The source added that half the demand for shares had come from outside the UK, suggesting British investors continue to be cautious following recent market turbulence that saw flotations called off.
Virgin Money confirmed its plans to IPO last week, after it shelved them in October amid the difficult market conditions.