Business

Virgin Money delays flotation citing 'market conditions'

Virgin Money shop signs Image copyright PA
Image caption Virgin Money had hoped to raise about £150m in its October stock market flotation

Virgin Money has delayed its planned October stock market flotation.

The company now expects admission to the London Stock Exchange's official list to happen when the markets are less volatile.

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

Virgin Money is hoping to raise £150m from the initial public offering.

The financial services provider part-owned by entrepreneur Sir Richard Branson announced on 2 October that it would apply for a stock market listing, and expected the flotation to occur in the same month.

But the FTSE 100 index of blue-chip shares has fallen 10% since September, wiping about £175bn off company valuations.

Global stock markets have also been very volatile, making Virgin Money think investors may not have much appetite for buying its shares in the current climate.

Virgin's move follows that of UK bank Aldermore, which also scrapped its flotation plans because of the recent stock market turbulence.

It had been planning to raise about £75m through the flotation, which was set to value the bank at about £800m.

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