Virgin Money is set to revive plans to float shares on the London Stock Exchange.
The UK bank, part-owned by entrepreneur Sir Richard Branson, originally planned to launch on the stock exchange in October but decided to delay the move due to volatile market conditions. It now expects to carry out this transaction by the end of November. It announced last month that the move would involve paying the Treasury the £50 million it owed following the purchase of Northern Rock in 2011.
Virgin Money said in a statement that market conditions are now right to launch on the stock exchange and it is set to move ahead with its initial public offering (IPO). The company is aiming to raise £150 million in the IPO and, if achieved, it would represent an "important step" for Virgin Money, according to chief executive Jayne-Anne Gadhia.
Ms Gadhia added: "We now plan to move forward with our IPO with the aim of being admitted 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."
One of the key factors in allowing Virgin Money to make this decision was the new rules set out by the Bank of England at the end of October. The Financial Policy Committee amended the amount of capital banks were allowed to hold. This move was designed to provide more clarity on the situation.
Virgin Money announced the appointment of a new chairman in September. Glen Moreno, chairman of publisher Pearson, has been hired to replace the outgoing David Clementi who is due to leave the company in mid-2015. Mr Moreno has experience within this type of role after previously being a director of Lloyds Banking Group.
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