Virgin Money prices at bottom of the range in London IPO

Shares were trading at just above 287p after pricing at 283p

(Getty Images)

Virgin Money’s long-awaited flotation will take place this morning, priced at the bottom end of expectations.

Shares were trading at just above 287p after being sold to outside investors for 283p — the very bottom of the 283p-333p indicative price range.

That values Virgin Money at £1.25 billion which is considerably less than the almost £2 billion which had been talked of before the float was postponed last month amid market turmoil after the Scottish referendum.

Branson and Ross could each collect a further £14.4 million if bankers to the issue decide to increase the sale by 10% through an over-allotment option.

Employees have each been given £1000 of shares. Many of them used to work for Northern Rock. Virgin, backed by Ross, took over the good part of the bank whose collapse and nationalisation came at the start of the financial crisis in 2008.

Today’s flotation triggered a final £50 million payment to the Treasury from Virgin taking the total it paid for the business to just above £1 billion.

Jayne-Anne Gadhia, chief executive of Virgin Money, said: “As we begin life as a public company, we are dedicated to maintaining the straightforward, transparent approach to business we believe differentiates us from rivals.”

Virgin raised £150 million of new capital in the share sale. Branson will end up with 34 per cent and Ross 33 per cent of the quoted company and have a six month lock-up on further share sales