Virgin Money valued at £1.25 billion on IPO price of 283p per share

Source: Virgin Money Holdings

Virgin Money Holdings (UK) plc ("Virgin Money") today announces the successful pricing of its initial public offering (the "Offer") at 283 pence per Ordinary Share (the "Offer Price").

  • Based on the Offer Price, Virgin Money’s market capitalisation will be approximately £1.25 billion at the commencement of conditional dealings.
  • The Offer is expected to raise total gross proceeds of approximately £312 million (assuming no exercise of the over-allotment option) and approximately £344 million (assuming exercise of the over-allotment option in full). Virgin Money will receive approximately £150 million of gross proceeds from the Offer.
  • The selling shareholders comprise Virgin Financial Investments Limited, funds managed by WL Ross & Co, Stanhope Investments and certain directors, members of senior management, the employee benefit trust and other shareholders. In the Offer a total of approximately 57 million Ordinary Shares will be sold by the selling shareholders (assuming no exercise of the over-allotment option), receiving total gross proceeds of approximately £162 million.
  • At Admission, the Company will have 441,600,856 Ordinary Shares in issue with a free float of 25% (assuming no exercise of the over-allotment option).
  • Following the Offer, it is expected that Virgin Financial Investments Limited will hold approximately 34% of Virgin Money’s Ordinary Shares and funds managed by WL Ross & Co will hold approximately 33% of Virgin Money’s Ordinary Shares (assuming exercise in full of the over-allotment option). Both holdings are subject to a six month lock-up agreement (from the date of pricing), the terms of which are described in the Prospectus.
  • Conditional dealings in Virgin Money Ordinary Shares will commence on the London Stock Exchange at 8.00am today under the ticker “VM.” (ISIN: GB00BQ8P0644).
  • Admission to the premium segment of the Official List and to trading on the main market for listed securities of the London Stock Exchange and the commencementhe Official List and to trading on the main market for listed securities of the London Stock Exchange and the commencement of unconditional dealings in the Ordinary Shares are expected to take place at 8.00am on 18 November 2014.
  • As stabilising manager on behalf of the syndicate, BofA Merrill Lynch has been granted an over-allotment option exercisable no later than thirty days from today, over up to approximately 11 million Ordinary Shares, representing 10% of the total number of Ordinary Shares comprised in the Offer.

Jayne-Anne Gadhia, Chief Executive Officer of Virgin Money, said:

 

“I am delighted to welcome all our new shareholders to Virgin Money. 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 completion of our IPO will see us make a final payment to the Government of £50 million as consideration for our acquisition of Northern Rock plc, taking the total paid to over £1 billion.

“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. We are passionate about improving competition in UK retail banking and believe that today’s IPO is another step forward for us as we seek to deliver on that objective.

"I would also like to thank all of my colleagues at Virgin Money for their hard work in bringing us to this point. There are many colleagues, like me, who have spent 20 years working with the Virgin brand. As we previously announced, each employee will be awarded £1,000 worth of shares in the business upon flotation meaning that all colleagues have a stake in our future success.”

Further information

  • Subject to certain customary exceptions, a lock-up period will be in place following Admission for the Company (365 days), the selling shareholders (180 days) and the directors and senior management (365 days) prohibiting further sale of Ordinary Shares without the consent of the Joint Global Co-ordinators.
  • In relation to the Offer and Admission, BofA Merrill Lynch and Goldman Sachs International are acting as Joint Sponsors, Joint Global Co-ordinators and Joint Bookrunners, Barclays and Citi are acting as Joint Bookrunners and Keefe, Bruyette & Woods is acting as Joint Lead Manager.

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