13th Nov 2014 10:43
LONDON (Alliance News) - Virgin Money Holdings (UK) PLC on Thursday unveiled the pricing for its initial public offering, having revived its flotation after putting in hold amid a deterioration in equity market conditions, with shares in the company trading higher on their debut.
Virgin Money said it will issue 441.6 million shares at 283 pence per share, giving the company a market capitalisation of approximately GBP1.3 billion. In conditional dealings Thursday, the stock was quoted at 288.75 pence.
The offer is set to raise around GBP312 million, assuming no exercise in the over-allotment option. If the over-allotment issue is exercised, the company expects to raise GBP344 million.
Virgin Money will receive around GBP150 million in gross proceeds from the offer, with the remainder going to selling shareholders.
The shares are being sold by Virgin Financial Investments Ltd, funds managed by WL Ross & Co, Stanhope Investments, and directors of the company. A total of 57 million shares in the offer are being sold by existing shareholders, who will receive around GBP162 million from the sale, assuming the over-allotment option is not used.
Following the flotation, Virgin Financial Investments will hold a 34% stake in the company, while WL Ross funds will have a 33% stake.
By Sam Unsted; [email protected]; @SamUAtAlliance
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