Richard Branson’s Virgin Money is to offer shares on the London stock exchange raising £150m in the process.
The retail-only UK bank, which has around 2.8 million customers, announced it is to offer shares representing 25 per cent of its capital to the market to finance future growth plans.
The initial public offering will also be good news for the UK Treasury which will receive £50m under the agreement which allowed Virgin to purchase Northern Rock when it ran into financial problems in 2011.
Employees will also benefit with all of the company’s 2,800 staff being allocated £1,000 of free shares.
Sir David Clementi, Chairman of Virgin Money, said: "I am pleased we have reached the point where Virgin Money is ready to start life as a listed company. We have built a safe, sound and secure bank supported by a strong Board. The company has an extremely positive future and I am delighted the business is in such a good position.”
Chie exxecutive Jayne-Anne Gadhia commented: “We are delighted to be announcing our intention to float Virgin Money. Over the last three years we have transformed our business. We have expanded our product range, increased our customer numbers, grown our balance sheet and enhanced our profitability. Our decision to take the business public marks just how far the company has come.”
Virgin Money, which is the official sponsor of the London Marathon, is also known for its "Just Giving" website which raises £80m a year for charity.
The floatation will be run by BoA Merrill Lynch, Goldman Sachs, Barclays, and Keefe, Bruyette & Woods and is expected to be completed by the end of October.
A recent poll saw Branson named as the most admired business leader of the last 50 years.