Shares in Virgin Money will be priced 283p per share when trading begins in earnest on Tuesday, the bank confirmed today.
The pricing, which City A.M. exclusively revealed yesterday, values the challenger bank at £1.25bn.
Conditional dealing begins this morning, with unconditional dealing and formal admission to the London Stock Exchange expected to take place next Tuesday.
Chief executive Jayne-Anne Gadhia said:
Our capability to deliver growth at meaningful scale, the quality of our balance sheet and the fact that we are unburdened by legacy issues makes us stand apart from other banks, and these strengths give us the potential to deliver on-going returns to our shareholders through both capital growth and progressive dividend payments.
The IPO will raise between £312m and £344m in gross proceeds, of which Virgin Money will receive around £150m for floating 25 per cent of the business.
The bank will use funds from the IPO to make a final £50m payment to the government as part of its acquisition of Northern Rock.
Virgin is expected to own around 34 per cent of the shares while WL Ross & Co will hold around 33 per cent. Both are subject to a six month lock-up agreement.
Employees at Virgin Money will each receive £1,000 of shares.