Newcastle bank Virgin Money is to delay its Stock Exchange flotation over turmoil in the financial markets.
Slow growth in the US, Germany and China has combined with global uncertainty surrounding Ebola, the war against Isis and Russian sanctions over Ukraine to create what has been described as a “perfect storm” in financial markets.
At one point this week, more than £46bn had been wiped off shares in the FTSE 100, causing UK challenger bank Aldermore to ditch its £800m initial public offering (IPO) on Wednesday, a week after Scottish construction firm Miller also dropped plans to list its housebuilding division.
The uncertainty has caused Virgin Money to issue a statement saying that it still intends to float, but admitting that it will not now do so in October as it first planned.
No timescale has been put on the flotation but it is still likely to happen this year.
Virgin’s chief executive officer Jayne-Anne Gadhia said: “Virgin Money continues to perform strongly and we remain focused on delivering a successful initial public offering as soon as market conditions allow.”