VIRGIN Money is expected to join the stock market on Friday at a valuation of about £1.5bn.
Taxpayers will recoup £50m from the sale as a result of a clause in the deal Virgin struck when it bought the ‘good bank’ part of Northern Rock.
After delaying its float plans last month, Virgin Money’s renewed attempt has already achieved support from institutional investors at the lowest point of the price range of 283p, valuing the business at £1.25bn, meaning that the listing is guaranteed to go ahead.
Sir Richard Branson and New York investor Wilbur Ross own almost 92 per cent of the equity meaning the floatation will net them a windfall worth a combined £1.2bn.
Directors and managers of the Newcastle-based lender will be almost £25m richer as a result of the move.
Senior managers have built up a 1.4 per cent stake in Virgin and chief executive Jayne-Anne Gadhia will receive a further 0.25 per cent share in the company if the bank attracts a premium price. The directors can sell a quarter of their holdings when the company floats.
The bank's 2,800 staff will also share in the windfall with each employee receiving shares worth about £1,000.
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