Immediate share sales should give Virgin money 150m which, after paying the 50m it owes the Treasury for the purchase of struggling Northern Rock plc, it would use for growth and recruitment.
The 50m is the remaining money owed by Northern Rock, which was bailed out by Virgin Money in 2011, after it started a nosedive near the beginning of the UK recession. Virgin Money will then have paid 1.02bn for Northern Rock, in total.
Each employee will received 1,000 in shares in the business after the flotation.
Virgin Money has 75 branches throughout the UK and has 2.8 million customers, according to the BBC; and employs 2,800 people.
For more about Virgin Money’s IPO and the other challenging banks which have or are looking to float this year, read Real Business’ report.
