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Virgin Money valued at £1.2bn

London - The market value of Sir Richard Branson's Virgin Money banking business was estimated at £1.2bn ($2bn) Thursday after its shares were listed in London.

The lender rose from the ashes of failed mortgage provider Northern Rock. Its shares rose 1% at the start of trading.

Virgin Money, which provides mortgages, savings facilities and credit cards to 2.8 million people, bought Northern Rock from the government for a down-payment of £820m three years ago. There have since been two other payments, while a fourth - worth £50m - will bring the total purchase price to over £1bn.

The initial public offering (IPO) had been scheduled for October, but a collapse in investor confidence forced a postponement.

Virgin Money, which raised £150m in the IPO, is owned jointly by Branson, US investor Wilbur Ross and an Abu Dhabi investment fund.

"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," Virgin Money chief Jayne-Anne Gadhia said.

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