Virgin Money shares priced at 283p

Virgin Money has announced that its shares will be priced at 283p per ordinary share when it lists, giving the company a market capitalisation of approximately £1.25bn.

The company confirmed that it expects to raise £150m from the initial public offering (IPO) when it lists on the London Stock Exchange on November 18.

Chief executive Jayne-Anne Gadhia said following completion of the IPO Virgin Money will make a final payment to the government of £50m as consideration for its acquisition of Northern Rock, which would take the total paid to more than £1bn.

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Ms Gadhia added: “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.”

She said: “As we begin life as a public company, we are committed to maintaining the straightforward, transparent approach to business that we believe helps differentiate us.”