Virgin Money has been priced at 283p per ordinary share ahead of its IPO this week, giving the challenger bank a market capitalisation of £1.25bn.
The Newcastle-based bank, which is part owned by Richard Branson, expects to raise £150m for itself in the listing.
Chief executive officer Jayne-Anne Gadhia confirmed the bank would make a final payment of £50m to the government in relation to the purchase of Northern Rock plc, and in accordance to a floatation payout in the purchase agreement.
Uncertainty in global markets had prompted Virgin Money to delay the IPO but then announced last week it would go ahead at a price range of between 283p to 333p per share.
This means the bank has been priced at the bottom of its suggested range as conditional dealings in shares will begin today.
Ms Gadhia said: “I am delighted to welcome all our new shareholders to Virgin Money. Our capability to deliver growth at meaningful scale, the quality of our balance sheet and the fact that we are unburdened by legacy issues makes us stand apart from other banks, and these strengths give us the potential to deliver on-going returns to our shareholders through both capital growth and progressive dividend payments.
“As we begin life as a public company, we are committed to maintaining the straightforward, transparent approach to business that we believe helps differentiate us.
“We are passionate about improving competition in UK retail banking and believe that today’s IPO is another step forward for us as we seek to deliver on that objective.
"I would also like to thank all of my colleagues at Virgin Money for their hard work in bringing us to this point. There are many colleagues, like me, who have spent 20 years working with the Virgin brand.
“As we previously announced, each employee will be awarded £1,000 worth of shares in the business upon flotation meaning that all colleagues have a stake in our future success.”