Allen & Overy is advising Virgin Money as it prepares to float on the London Stock Exchange in a listing that will value the challenger bank at up to £2bn.

The initial public offering (IPO), which is due to be completed later this month and raise £150m will see Virgin Money staff receive £1,000 worth of shares each when the deal goes through.

Part owned by entrepreneur Sir Richard Branson, a successful flotation for Virgin Money would make it the fourth new bank listing this year, after TSB's demerger from Lloyds Banking Group and the listings of OneSavings and Aldermore.

The A&O team is being led by global corporate practice co-head Andrew Ballheimer with senior associate Michael Jacobs. Corporate partners David Broadley and George Knighton took supporting roles.

Ballheimer also took charge of the A&O team acting for Virgin Money when it acquired nationalised retail bank Northern Rock in 2011.

That deal, which was completed in a difficult market and was packed with regulatory challenges and financing complexities, won Virgin Money's legal team the Legal Week award for In-House Innovation of the Year in 2012.

Upon completion of a successful listing, Virgin Money will make the final outstanding payment to the Treasury of £50m in relation the Northern Rock.

A&O is currently the only magic circle firm to hold a spot on the Virgin Group's eight-strong legal panel, which also includes Herbert Smith Freehills, Macfarlanes, Bond Dickinson, Bird & Bird, Dentons, Harbottle & Lewis and Burges Salmon.

All eight firms were re-appointed following a review of the roster earlier this year.