On 2 October, Virgin Money said it would apply for the admission of its Ordinary Shares to the premium listing segment of the London Stock Exchange.
The Company announced that its offer was expected to raise gross proceeds of approximately £150m and that admission would take place in October 2014.
Virgin Money said it was continuing to “progress” its plan, but that “mindful of market conditions” it now expects admission to occur later than October this year and will float “as soon as constructive market conditions allow.”
In a market update on its intentions, Jayne-Anne Gadhia, chief executive officer of Virgin Money, (pictured) said: “Virgin Money continues to perform strongly and we remain focused on delivering a successful initial public offering as soon as market conditions allow.”
The news will delay a payment due to HM treasury owed for its acquisition of Northern Rock in January 2012 and the £1,000 worth of shares in the business due to employees on flotation.
When Virgin Money agreed to buy Northern Rock in late 2011, it was agreed that a £50m payment would be made in the event of a successful IPO of the combined businesses before the end of 2016. This payment will take the total paid by Virgin Money to HM Treasury for Northern Rock plc to £1.02bn.
Earlier this month the mortgage lender confirmed a 1.6% mortgage market share and 1.4% share of savings, alongside 1.8% credit card share to June 2014.