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Virgin Money delays float amid global market turmoil

Rival Aldermore ditched its £800mn float citing market conditions earlier this week

City Staff
Friday 17 October 2014 13:31 BST
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Virgin Money has pushed back plans for a £2 billion flotation following a week of market turbulence.

The Newcastle-based lender had expected its initial public offering (IPO) to take place this month but now admits the sale will happen "as soon as constructive market conditions allow".

The move comes after a collapse in investor confidence in the world economy caused the FTSE 100 Index to slump by more than 9 per cent since the beginning of September.

Earlier this week UK challenger bank Aldermore ditched its £800 million initial public offering, and Scottish construction firm Miller also dropped plans to list its housebuilding division last week.

However, designer shoe brand Jimmy Choo defied sliding market conditions and saw through its £545 million float today, albeit at the bottom end of its pricing range.

Virgin Money chief executive Jayne-Anne Gadhia said: "Virgin Money continues to perform strongly and we remain focused on delivering a successful initial public offering as soon as market conditions allow."

Additional reporting PA

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