Virgin Money confirms listing price at bottom of range

Reuters with
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Virgin Money, the British challenger bank partly owned by entrepreneur Richard Branson, said it had priced its listing on the London Stock Exchange at the bottom end of its price range, valuing the business at 1.25 billion pounds ($2 billion). 

    The bank, which is also backed by U.S. billionaire Wilbur Ross, said it would raise 150 million pounds from the initial public offering (IPO). The IPO was priced at 283 pence per share and conditional trading will begin at 0800 GMT on Thursday. 

Read More Virgin Money IPO marks challenger bank emergence

   Virgin Group owns around 47 percent of Virgin Money, Ross 45 percent and the U.K. taxpayer gets £50 million under the terms of Virgin Money's purchase of the "good bank" assets of nationalized collapsed lender Northern Rock.  

Virgin Money is one of several post-credit crisis challenger banks which have emerged in the U.K. in recent years, to contest the larger banks' dominance of retail banking, and one of several to try their luck on the stock market this year.

Read More I'm selling 6 times more than buying: Wilbur Ross

Other challengers listing this year include Aldermore and OneSavings Bank. Metro Bank, one of the most visible of the upstart banks, decided to postpone its IPO plans until 2016 earlier this year.

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