![mONEY](http://image.digitalinsightresearch.in/uploads/imagelibrary/Archive/Main/Virgin%20Money.jpg)
The offer is expected to raise gross proceeds of approximately £150m and result in a free float of at least 25% of the issued share capital of the company.
According to the bank, the IPO is restricted to certain institutional investors in the UK and outside the US, and some qualified institutional buyers in the US.
Virgin Money chief executive officer Jayne-Anne Gadhia said: "Over the last three years we have transformed our business.
"We have expanded our product range, increased our customer numbers, grown our balance sheet and enhanced our profitability.
"Our decision to take the business public marks just how far the Company has come."
"We look forward to being a listed company and remain committed to delivering positive outcomes for all of our stakeholders."
Following the successful completion of the offer, the company would make a final payment of £50m to the UK Treasury as agreed in 2011, when it acquired Northern Rock.
The payment will take the total amount paid by the company to date to Treasury for Northern Rock to £1.02bn.
Virgin Money, which has 75 branches across the UK with 2.8 million customers, also confirmed that each of its 2,800 employees will receive £1,000 worth of shares in the business upon flotation.
The share sale is expected to support the company’s growth plans, and its common equity tier 1 capital ratios, whilst further improving its ability to recruit, retain and incentivise its key management and employees.
Bank of America Merrill Lynch and Goldman Sachs International have been appointed as joint sponsors, joint global co-ordinators and joint bookrunners, while Barclays and Citi acting as joint bookrunners.
In addition, Keefe, Bruyette & Woods is serving as joint lead manager to the offer.
Image: Virgin Money’s initial public offering is expected to raise gross proceeds of nearly £150m. Photo: Serge Bertasius Photography/ ©2014 FreeDigitalPhotos.net.